Indonesia and the governments of Indonesia and the Gulf Cooperation Council (GCC) countries are accelerating negotiations on the Indonesia–GCC Free Trade Agreement (FTA) during the fourth round of talks held in Riyadh, Saudi Arabia, from January 18–23, 2026, to complete the substantive agreement this year. Officials said this fourth round represents a critical phase in pushing for a substantive conclusion to the talks. The negotiations focus on key areas such as trade in goods, services, investment, and rules of origin, as well as strengthening economic cooperation in Islamic finance and the halal sector. Indonesian lead negotiators highlighted constructive discussions and mutual solutions as factors that could speed up progress toward a 2026 completion. Both sides hope that finalizing the agreement will expand Indonesia’s market access for goods and services in the Gulf region.
The GCC comprises six member states: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar. The Indonesia–GCC FTA was officially launched on July 31, 2024, as a strategic instrument to boost Indonesia’s economic competitiveness. The Indonesian government projects that the FTA could increase the country’s exports by roughly 17.4 percent, particularly in sectors such as electronics, leather, metal products, manufacturing, and textiles, while also broadening service exports, especially in air transport and business services, to markets in the Middle East, Africa, and Europe. Trade data from the Indonesian Trade Ministry shows robust two-way trade with GCC markets, reflecting the potential economic benefits of a finalized agreement.
