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Iran, Indonesia sign preferential trade agreement
Middle East
2023-05-23 | 02:30
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Iran, Indonesia sign preferential trade agreement
The leaders of Indonesia and Iran on Tuesday signed a preferential trade agreement to expand economic relations during an official visit by Iranian President Ebrahim Raisi.
Indonesian President Joko Widodo, speaking after the signing as streamed online by his cabinet secretariat, hoped the agreement "would increase trade between Indonesia and Iran" but did not provide details.
Raisi's visit comes as ties between the Islamic republic and the West become increasingly strained following Iranian security forces' violent crackdown on protests against the clerical elite after the death of a Kurdish woman in the custody of morality police last September.
Several countries including the United States have imposed broad sanctions on Iran over its nuclear program and alleged rights violations.
Trade between Indonesia and Iran dropped from $715.5 million to $141.6 million in 2019 after the United States imposed sanctions on Iran.
Indonesia's trade ministry has previously said two-way trade between the nations currently amounts to around $250 million, with the Southeast Asian country recording about a $200 million surplus.
Trade ministry official Djatmiko Bris Witjaksono told reporters on Monday Indonesia is keen to boost trade with Iran and its surrounding areas.
"Iran could be a gateway to the surrounding region, such as Central Asia ... or even to Turkey because we do not have any trade deal with Turkey yet," he said.
Under Monday's agreement, Iran would give Indonesia greater access to products like processed food and pharmaceuticals, textile, palm oil, coffee and tea, while Indonesia will lower tariffs for Iran's oil and chemical products, metals and some dairy products.
Reuters
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