A warm welcome for president in Indonesia
11cooperation deals, including preferential trade agreement, signed Iran, Indonesia aim to increase bilateral trade to $20b Raeisi: Both nations agree to stand against US unilateralism
Iran and Indonesia took “huge steps” on Tuesday to cement their ties as President Ebrahim Raeisi paid a two-day state visit to the East Asian nation.
Raeisi was welcomed by his host President Joko Widodo with a 21-gun salute at the Bogor Palace, just outside the capital, Jakarta, where the pair planted two saplings as a sign of peace and friendship.
Following bilateral talks behind closed doors, Raeisi and Widodo oversaw the relevant ministers signing 11 documents and cooperation agreements in various fields, including preferential trade, lifting visa requirements, cultural exchanges, science and technology, oil and gas, as well as supervision over pharmaceutical products.
The commercial deal aims to boost international trade ties to try and offset the economic impact of Western sanctions.
“We believe that sanctions and threats cannot stop us in any way,” Raeisi told a joint press conference after the signing ceremony that was streamed online.
“Cooperation and relations with neighboring countries, Muslim countries, and countries that are aligned with us in various fields is our priority,” he added.
Under the pact, Iran will provide easier access for Indonesian exports including vegetable oil, cocoa, coffee, tea, processed foods, pharmaceuticals, textiles, palm oil, and tobacco, according to the Indonesian Trade Ministry.
In return, Jakarta would lower tariffs on Iranian exports to Indonesia, including oil and its derivative products, minerals, chemicals, metals and some dairy products.
Indonesian Trade Ministry official, Djatmiko Bris Witjaksono, said the two countries had agreed on a “countertrade” scheme, in which goods and services can be exchanged “without being constrained by scarcity or currency difficulties”.
Two-way trade between the nations currently amounts to around $250 million, with the Southeast Asian country recording about a $200 million surplus, according to the Indonesian Trade Ministry.
“I hope [the agreement] will expand trade between Indonesia and Iran,” Widodo said.
Raeisi said the goal was to raise the value of two-way trade between Indonesia and Iran to $20 billion.
“The two countries have decided to do trade with local currencies,” he added.
Raeisi further took a swipe at the United States’ unilateral approach, saying both Iran and Indonesia were in agreement on “fiercely fighting unilateralism”.
Later, addressing a group of Indonesians at an Islamic center in Jakarta, Raeisi said U.S. hegemony was nearing its end with the emergence of new powers.
He also called for unity in the Islamic world in order to combat enemies who seek to sew discord and foment division among Muslim nations.