Indonesia is being encouraged to accelerate manufacturing exports to the Middle East by maximizing existing and ongoing trade agreements. Center of Reform on Economics (Core) Indonesia highlighted that manufactured products—particularly labor-intensive goods such as garments and Muslim fashion—offer strong competitive advantages in the region. With domestic competition intensifying, wider access to Middle Eastern markets is seen as a timely opportunity to support struggling industries while expanding Indonesia’s export footprint. Beyond apparel, other promising products include crude palm oil (CPO), coffee, and selected automotive products such as motorcycles and passenger vehicles, which could further diversify Indonesia’s export portfolio.

At the same time, experts emphasized the importance of anticipating potential risks from increased imports originating from partner countries. Certain industries, such as petrochemicals, may face stronger competition as partner economies possess cost-efficient production capabilities. To address both opportunities and risks, the government continues to promote active utilization of trade frameworks, including the Indonesia–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) and the Indonesia–Iran Preferential Trade Agreement (PTA). In parallel, negotiations for the Indonesia–Gulf Cooperation Council Free Trade Agreement (Indonesia–GCC FTA) have entered a critical fourth round in January 2026, covering goods, services, investment, rules of origin, and cooperation in Islamic economy and halal sectors. These initiatives reflect Indonesia’s commitment to strengthening long-term economic partnerships with Middle Eastern countries while creating broader and more sustainable export opportunities for domestic industries.
Source:
https://ekonomi.bisnis.com/read/20260128/12/1948001/optimalkan-perjanjian-dagang-ri-didorong-genjot-ekspor-ke-timur-tengah