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Parliament ratifies Iran-Indonesia preferential trade deal
In an open session of the Parliament on Wednesday, the lawmakers passed a bill on PTA after discussing a report from the Parliament’s Economic Commission in that regard.
Payman-Pak said the PTA has been ratified by the Parliament following considerable efforts by the Trade Promotion Organization of Iran after President Ebrahim Raisi took office in August 2021.
The leaders of Indonesia and Iran on May 23, 2023 signed a PTA to expand economic relations during an official visit by Iranian President Ebrahim Raisi.
Indonesian President Joko Widodo, speaking after a signing ceremony that was streamed online by his cabinet secretariat, hoped the agreement “would increase trade between Indonesia and Iran”.
“Partnerships and relationships with neighboring countries and Islamic countries and countries with the same views are our priority,” Raisi said addressing the ceremony.
Also, 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, according to the Indonesian Trade Ministry.
Djatmiko told reporters Indonesia is keen to boost trade with the Middle East and the surrounding region.
“Iran could be a gateway to the surrounding region, such as Central Asia ... or even to Turkey because we do not have any trade deal with Turkey yet,” he said.
Under the PTA agreement, Iran would give Indonesia greater access to products like processed food and pharmaceuticals, textile, palm oil, coffee and tea, while Indonesia will lower tariffs for Iran’s oil and chemical products, metals and some dairy products.