Indonesia and Iran are in the final stages of completing the PTA negotiations

06 October 2022 10:59

JAKARTA - Indonesia and Iran have concluded the 6th round of negotiations between the Indonesia–Iran Preferential Trade Agreement (II-PTA). This negotiation will be held on a hybrid basis on 29 September–1 October 2022 in Kuta, Bali.

The Indonesian delegation was led by the Director General of International Trade Negotiations Djatmiko Bris Witjaksono and accompanied by the Director of Bilateral Negotiations Johni Martha. Meanwhile, the Iranian delegation was led by the Head of International Agreements, Vice-Presidency for Legal Affairs (LVP), Vice-Presidency of the Islamic Republic of Iran, Mehdi Piri.

“Iran is a potential non-traditional trading partner for Indonesia and needs to be worked on optimally. For this reason, the continuation of the PTA negotiations with Iran is expected to open up opportunities for Indonesia to increase exports to a wider market," said Djatmiko.

Djatmiko explained that the previous II-PTA negotiations had lasted five rounds and four intercession meetings. These negotiations were also delayed several times due to the impact of the Covid-19 pandemic. However, both parties agreed to continue negotiations and discuss all pending issues in an effort to achieve the completion target this year.

“The negotiations went smoothly and both parties showed flexibility to each other so that most of the issues were agreed upon. I am sure, with intensive communication and good collaboration, several other pending issues will be resolved soon,” explained Djatmiko.

In January–July 2022, the total trade between Indonesia and Iran reached USD 163.2 million, an increase of 62.33 percent compared to the same period the previous year. Meanwhile, the total trade between the two countries in 2021 will reach USD 208.8 million, a 3.33 percent decrease compared to 2020. In 2021, Indonesia's exports to Iran will be USD 187.2 million, or down 5.60 percent, and Indonesia's imports from Iran will be USD 21.6 million, up 22.10 percent. Indonesia recorded a surplus of USD 165.5 million against Iran.

Indonesia's main export commodities to Iran are peanuts, palm oil, motorcycles, wood fiber, and industrial monocarboxylic fatty acids. Meanwhile, Indonesia's main import commodities from Iran are turbo jets and other gas turbines, dates, iron or steel rods, instruments, apparatus and models designed for demonstration purposes, as well as alkaloids. (LM)


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