Indonesia’s Ministry of Trade (Kemendag) is working on a free trade agreement (FTA) between Indonesia and the Gulf Cooperation Council (GCC) that’s targeted to be substantively completed in 2026 after the fourth round of negotiations was held recently. The GCC includes Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar. The negotiations — launched in July 2024 and now at a more technical phase — focus on core issues such as trade in goods and services, investment, and rules of origin, as well as cooperation in the Islamic economy and halal sectors. Both Indonesian and GCC negotiators expressed confidence that constructive discussions can speed up the conclusion of the deal and strengthen long-term economic ties between Indonesia and the GCC countries.
The planned Indonesia-GCC FTA is expected to boost Indonesian exports by up to around 17.4%, particularly in industries such as electronics, leather, metal products, manufacturing, and textiles, while also expanding services exports such as air transport and business services to markets in the Middle East, Africa, and Europe. Indonesia-GCC trade has already reached a significant level, with total bilateral trade amounting to about USD 15.45 billion in January–November 2025, comprising roughly USD 7.59 billion in Indonesian exports and USD 7.86 billion in imports from the GCC. The agreement aims to broaden market access for Indonesian products and strengthen competitiveness across sectors as part of Indonesia’s broader export expansion strategy.
