Iran Optimistic About Trade Deal with Indonesia
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14 August 2024 21:38 WIB
TEMPO.CO, Jakarta - Iran's Deputy Foreign Minister for Education and Research, Mohammad Hassan Sheikholeslami, expressed optimism regarding the implementation of the recently ratified Indonesia-Iran Preferential Trade Agreement (II-PTA). He expects mutual benefits for both nations.
“I’ve received reports about a high level of optimism regarding this agreement’s implementation,” Sheikholeslami stated during a press briefing at the Iranian ambassador's residence in Jakarta on August 13, 2024.
According to him, the II-PTA, signed by high-ranking officials from both countries, has undergone ratification processes in Iran and Indonesia. Following its approval by the Iranian parliament and the Constitutional Guardian Council, the agreement officially became law in Iran. In Indonesia, Commission VI of the House of Representatives (DPR) ratified the II-PTA on July 8, 2024, during a meeting with the Trade Ministry.
Initially signed on May 23, 2023, by the trade ministers of Iran and Indonesia in the presence of both countries' presidents, the late President Ebrahim Raisi and President Jokowi, the II-PTA aims to eliminate or reduce tariffs on 239 tariff posts across various sectors, including mineral, industrial, agricultural, and fishery products.
The agreement is also expected to support economic recovery after the Covid-19 pandemic and improve Indonesia's macroeconomic performance.
Trade Minister Zulkifli Hasan expects Indonesia's exports to Iran to reach US$494 million by 2030 and result in a surplus of US$468 million. “It is hoped that the II-PTA can be implemented in early 2025,” he said in a written statement from the Ministry of Trade.
Indonesia has consistently maintained a trade surplus with Iran, totaling US$206.9 million in 2023. In the same year, Indonesia's exports to Iran were recorded at US$195.1 million while Indonesia's imports from Iran were US$11.7 million, meaning a surplus of US$183.4 million.
Sheikholeslami also highlighted Iran's promising economic prospects, emphasizing the opportunities for countries willing to engage in trade and investment despite US sanctions.
NABIILA AZZAHRA
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