Indonesia And Iran Sign Preferential Trade Agreements

President Joko Widodo (right) and Iranian President Seyyed Ebrahim Raisi after holding a press conference at the Bogor Presidential Palace, West Java, Tuesday (23/5/2023). (ANTARA/Mentari Dwi Gayati)

JAKARTA - The governments of Indonesia and Iran signed a preferential trade agreement (PTA) to increase trade between the two countries.

"Regarding the economy, today, Indonesia and Iran have signed a preferential trade agreement (PTA), hopefully it can further increase trade between Indonesia and Iran," said President Joko Widodo at a press conference with Iranian President Seyyed Ebrahim Raisi at the Bogor Palace, West Java, as reported by ANTARA, Tuesday, May 23.

The PTA is one of 10 agreements reached during President Seyyed Ebrahim Raisi's state visit to Indonesia.

In the economic sector, Indonesia and Iran are also exploring the establishment of business-to-business deals (B to B), investments in the development of the capital city of the archipelago, as well as solutions for investment in the oil and gas sector.

"For rail signal technology, I have expressed hope for joint research cooperation, technology transfer, danassembly (storage)," added Jokowi.

During the meeting, it was also agreed on trade preference agreements, eradication of the illicit trafficking of psychotropic narcotics and their precursors, science and technology and innovation, guarantees of halal products, development of the energy sector, as well as regulation of pharmaceutical, biological products, traditional medicines, cosmetics and processed foods.

Then, agreements regarding visa exemption for diplomatic and official passport holders, mutual administrative assistance in customs, trade promotions, and cultural exchange program deals.

The value of Indonesia-Iran trade cooperation in 2022 will reach US$257.2 million, an increase of 23 percent compared to 2021.

Seyyed Ebrahim Raisike Indonesia's state visit Tuesday was the first since he was sworn in as President of Iran on August 3, 2021. Seyyed Ebrahim Raisi and the delegation are planned to be in Indonesia until Wednesday, May 24, 2023.