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Nuclear Deal; Indonesia Sets Eyes on Iran Market

23 July 2015 16:04 WIB

TEMPO.CO, Jakarta - The Indonesian government is seeking to tap Iran's market following the country's nuclear deal on July 14. last. Coordinating Minister for the Economy Sofyan Djalil said Iran is a potential export market for Indonesia. Iran economy is expected to regain its footing after economic sanctions are lifted.

"The end of this nuclear issue could be an opportunity for Indonesia's exports," the minister said in Jakarta yesterday.

Sofyan said that in 2011-2012 the value of Indonesia's exports to Iran reached US$2 billion. In early 2015, the value slumped to US$400 million. So far the government is trying to reactivate cooperation with Iran, expecting the country to be an alternative destination of Indonesia's exports after the United States, China, or Japan.

United States along with five other countries had renewed an agreement on Iran's nuclear program by lifting the economic embargo. Many experts predict that lifting the embargo would cause the global oil market to be flooded Iran's crude, making oil prices plummet further.

Yesterday, the West Texas Intermediate (WTI) crude was traded for US$50.36 a barrel, up 0.42 percent. The Brent was priced at US$57.04, edging up by 0.68 percent.

Nus Nuzulia Ishak, director general of national export development at the Ministry of Trade, said the government is also targeting markets in the African region through Egypt.

"Companies that invest in Egypt have a better chance of obtaining facilities to market their products to member countries of the Tripartite Free Trade Area (TFTA)," he said.

ANDI RUSLI



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