"This will be the second agreement between Indonesia and the Middle East region, (with the first) signed on July 1, 2022, which is the Comprehensive Economic Partnership Agreement (CEPA) with the UAE," the ministry's director general of international trade negotiations, Djatmiko Bris Witjaksono, said here on Monday.
The PTA signing will be carried out during Iranian President Seyyed Ebrahim Raisi's visit to Indonesia on May 23–24, 2023.
During his visit, the two countries will also hold a bilateral meeting to discuss further trade cooperation potential.
The PTA signing will continue with the ratification process, with each country formulating its own mechanism.
The products that will be listed in the PTA will include processed foods, pharmaceutical products, rubber, paper, textiles, wood, footwear, cotton, electrical machinery, motorized vehicles, manufacturing products, chemicals, and aluminum.
Indonesian products that are quite popular in the Iranian market, such as vegetable oil, cocoa, coffee, tea, spices, fruits, vegetables, and fish, will also be given preference in the PTA.
"Indonesia will provide lower tariff facilities for several products originating from Iran, including mineral fuel, oil and its derivatives, chemicals, steel, pharmaceuticals, mechanical equipment, fruits, processed foods, nuts, and wheat," Djatmiko said.
He deems the PTA agreement very important as Iran is considered as a country with huge economic capabilities in the Middle East region and vast natural resources.
"We see Iran as a gateway to Central Asia. We already have (a trade agreement) with the UAE, but by entering Iran, we can enter surrounding areas such as Azerbaijan, and even Turkey, because we do not have a trade agreement with Turkey yet," he said.
The total trade between Indonesia and Iran reached US$54.1 million in January–March 2023 and it was recorded at US$257.2 million for the whole 2022.
Related news: Iran keen to intensify cooperation with Indonesia
Related news: Iran praises Indonesia's stand on nuclear deal
Translator: Maria C, Kenzu
Editor: Tia Mutiasari
Copyright © ANTARA 2023
