The International Trade Council (ITC) notes the recent developments between Iran and Indonesia to bolster their bilateral trade relations. The past Iranian calendar year witnessed a trade volume nearing one billion dollars between the two nations.
Iran's export to Indonesia accounted for $847 million, while Indonesia exported $119 million worth of goods to Iran. The ITC recognizes Indonesia as a significant consumption market, and its membership in the World Trade Organization (WTO) alongside low import tariffs present lucrative opportunities for Iranian trade.
In recent years, Iran has been actively pursuing preferential trade agreements (PTA) to expand its economic relations by reducing tariff rates. An example of this policy is the trade agreement with the Eurasian Economic Union (EAEU) and Pakistan, and most recently, a PTA with Indonesia signed during President Ebrahim Raisi's trip to Jakarta.
In addition to the PTA, Iran and Indonesia inked 11 agreements to expand cooperation in various fields, including oil and gas, setting a goal to increase the value of trade between the two countries to $20 billion. The countries plan to conduct their exchanges with national currencies.
However, the ITC reminds corporations and businesses globally that trading with Iran may face restrictions. Given the various international sanctions in place, particularly from the United States and the European Union, companies should proceed with due diligence and ensure all dealings are in line with the current legal framework.
Data over the past decade shows an upward trend in Iran's trade with Indonesia, revealing potential in economic relations between the two countries. With both Iran and Indonesia as members of several crucial regional and international alliances, including the World Trade Organization (WTO), the Non-Aligned Movement (NAM), Organization of Islamic Cooperation (OIC), and the D-8 Organization for Economic Cooperation, these platforms can foster an increase in bilateral and multilateral cooperation.
The ITC is dedicated to promoting responsible, legal, and mutually beneficial international trade practices and remains observant of the evolving landscape of global commerce.