Iran Press/ Asia: According to Iran Press Saturday morning report, citing the Bruneo Bulletin news website, the Ministry of Trade of Indonesia wrote in a statement that it published after the end of the seventh round of negotiations between the two sides: "Governments can now sign the agreement documents that will be called the Indonesia-Iran Preferential Trade Agreement II-PTA."
The ministry announced that Indonesia and Iran will sign this trade agreement during the visit of Iranian President Ebrahim Raisi to Jakarta on May 22-24 (1st to 3rd of Khordad).
Johnny Marta, Director of Bilateral Negotiations at the Ministry of Trade of Indonesia, said: "Tehran is a non-traditional business partner for Jakarta."
He further added: "By signing this agreement, we hope to expand our export opportunities and market scope."
Indonesia is looking for new markets to diversify its export options and thereby reduce its reliance on traditional trading partners, many of which have been affected by the weakening global economy and geopolitical risks.
The Jakarta government plans to accelerate the recovery of the Indonesian economy from the effects of the COVID-19 pandemic by increasing exports.
The countries of the Middle East, along with the countries of Africa, South Asia, South America, and Eastern Europe, are among Jakarta's business partners.
In July last year, Indonesia signed the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates.
Since 2018, the Indonesian government has pursued similar cooperation with other Persian Gulf countries, including CEPA with Saudi Arabia.
The Ministry of Trade of Indonesia noted that the trade exchange between Iran and Indonesia in the first quarter of this year amounted to 54.1 million dollars, and last year the value of bilateral trade increased by more than 23% to 257.2 million dollars.
The ministry added: "Motorcycles, auto spare parts, industrial products, and wood fibers are among Indonesia's major exports to Iran, and meanwhile, Iranian major exports to Indonesia include dates and grapes, carbonates and plant alkaloids, and a wide range of other products."
The ministry said that Indonesia and Iran have also concluded negotiations on an article related to mutual trade, which allows the two countries to exchange the price of each other's goods and services on a barter basis (goods-for-goods exchange) instead of settling exchanges with money.
This allows trade between Tehran and Jakarta to continue despite possible difficulties in obtaining currency commonly used in international trade (such as the US dollar).
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