Of the mentioned figure, $847 million was the share of Iran’s export to Indonesia, and $119 million was the share of Indonesia’s export to Iran.
Indonesia is one of the world's consumption markets, and this country's market is the main destination of many countries' export goods. Considering Indonesia’s membership in the World Trade Organization (WTO) and low tariffs for imports to this country, Iran can also take advantage of the economic status of Indonesia and expand its trade with this country.
In recent years, Iran has started to sign preferential trade agreements (PTA) with other countries to expand its economic relations through the reduction of tariff rates. A clear example of this policy is the trade agreement with the Eurasian Economic Union (EAEU) and Pakistan, based on them zero tariffs are to be applied on at least 100 items.
Iran also signed a PTA with Indonesia on Tuesday during the trip of President Ebrahim Raisi to Jakarta.
Iran, Indonesia ink 11 agreements to expand co-op in different fields
During this trip, the two sides inked 11 agreements on cooperation in different areas, including oil and gas, in the presence of the two countries’ presidents.
In a joint press conference with Indonesian President Joko Widodo on Tuesday, President Raisi said that Iran and Indonesia have various fields and capacities to improve the level of relations, emphasizing that the signing of numerous cooperation agreements in various fields shows the determination of the two countries to develop relations in all fields.
Referring to the goal set to increase the value of trade between the two countries to $20 billion, the president said, “Of course, the two countries have decided to conduct their exchanges with national currencies.”
Indonesian traders very eager to expand relations with Iran
Also, before his trip to Indonesia, Iranian Minister of Communications and Information Technology Issa Zarepour, who is the Iranian chairman of Iran-Indonesia Joint Economic Committee, held a meeting with some Indonesian traders and businessmen in Tehran, after which, the minister said that the Indonesian traders are very willing to expand ties with Iran.
By removing the obstacles, the commercial exchanges between Iran and Indonesia can be multiplied quickly, the minister noted.
Zarepour also met Indonesian Trade Minister Zulkifli Hasan on Monday prior to the trip of President Raisi to Indonesia in order to finalize the documents of expanding trade between the two countries.
Iran-Indonesia trade on upward trend in past decade
The data of the last decade of Iran's trade with Indonesia show that the peak of Iran's trade relations with this country was in the Iranian calendar year 1400 (ended on March 20, 2022), which can be a turning point in history of trade between the two countries.
Iran's 10-year exports to Indonesia show that in 1400, the highest value of exports to Indonesia occurred in the last ten years, which was $1.081 billion.
Iran’s export to Indonesia in the last ten years shows an upward trend, as the exports to this country have increased from 60 million dollars in 1392 to more than one billion dollars in 1400. This is a sign of the potential of relations between the two countries in the economic area.
‘Iran can use Indonesia as a hub for marketing its products in ASEAN countries’
Indonesian Ambassador to Tehran Ronny Prasetyo Yuliantoro has said that Iran can use Indonesia as a hub for marketing its products in the ASEAN countries.
The envoy made the remarks in an interview conducted by the Tehran Times on the sidelines of a ceremony to celebrate ASEAN Day 2022 in Tehran in last August.
“I think we [ASEAN member states and Iran] have some great potential that can be developed, for instance now with regard to the health field we can have some kind of cooperation, you know this is a time that we can increase cooperation in the health sector”, he stated.
“So, this is a good time and then I believe that there is some potential that can be still developed between ASEAN countries and Iran”, the ambassador reiterated.
It should be also mentioned that the membership of Iran and Indonesia in important regional and international agreements and alliances such as the World Trade Organization (WTO), the Non-Aligned Movement (NAM), Organization of Islamic Cooperation (OIC), and the D-8 Organization for Economic Cooperation, known as Developing-8, can be a platform to increase bilateral and multilateral cooperation.
Given such capacities and platforms, Iran and Indonesia are determined to deepen cooperation in various fields, including commercial and economic areas.