Indonesia, Iran ink Preferential Trade Agreement

Indonesia, Iran ink Preferential Trade Agreement

Indonesian President Joko Widodo (right) and Iranian President Seyyed Ebrahim Raisi held a press conference at Bogor Presidential Palace, West Java, Tuesday (May 23, 2023). (ANTARA/Mentari Dwi Gayati/FR)

Jakarta (ANTARA) - Indonesian and Iranian governments, Tuesday, signed a Preferential Trade Agreement (PTA) to boost trade between both nations, President Joko Widodo (Jokowi) stated during a joint press conference at the Bogor Presidential Palace, West Java, Tuesday.

"In relation to the economy, today, Indonesia and Iran had signed the Preferential Trade Agreement (PTA), and it is expected to improve trade between Indonesia and Iran," he noted.

PTA is one of the 10 agreements signed during Iranian President Seyyed Ebrahim Raisi's state visit to Indonesia. The 10 cooperation agreements range from health to trade.

In the field of economy, Indonesia and Iran are also exploring the formation of business-to-business (B to B) agreement, Nusantara State Capital development investment, and solution for oil and gas sector investment.

He also voiced his expectations for joint research cooperation, technology transfer, and assembly for railway signal technology.

At the meeting, other matters that were agreed upon comprised eradication of illicit traffic of psychotropic narcotics and their precursors; science, technology and innovation; and halal product guarantee.

The discussions also covered development of the energy sector as well as regulations for pharmaceutical, biological, traditional medicine, cosmetic, and processed food products.

The other forms of cooperation are for visa exemption for holders of diplomatic and service passports; mutual administrative assistance in customs; trade promotion; and cultural exchange program agreement.

The value of trade cooperation between Indonesia and Iran in 2022 had reached US$257.2 million, or increased by 23 percent as compared to that in 2021.

Raisi's state visit to Indonesia on Tuesday was the first ever since being inaugurated as president of Iran on August 3, 2021.

He along with his delegations are scheduled to stay in Indonesia until May 24, 2023.

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