Trade Minister Zulkifli Hasan, known as Zulhas, has set an ambitious target for Indonesia’s exports to Iran, aiming to reach USD 494 million (IDR 8.03 trillion at IDR 16,269 exchange rate) by 2030. This target hinges on the approval of the Preferential Trade Agreement (PTA) between Indonesia and Iran. At a working meeting with the House of Representatives' Commission VI on 8 July 2024, Zulhas emphasized that the PTA, once ratified through a Presidential Regulation, could be implemented by 2025. The agreement is expected to boost Indonesia's export surplus by opening market access to Iran through tariff reductions and eliminations. Indonesia will benefit from the removal and reduction of tariffs on 239 tariff lines, including mineral products like briquettes and petroleum, industrial products such as processed foods, rubber, and motor vehicles, as well as agricultural products like fruits and vegetables, and fishery products. Conversely, Iran will see tariff reductions on 227 tariff lines for mineral products like mineral fuel oils, industrial products such as chemicals and paper, and agricultural products including yogurt, vegetables, and fruits, as well as fishery products.
The agreement has garnered support from Commission VI, which highlighted the importance of considering geopolitical aspects, tariff and non-tariff barriers, and the market size of both parties in the PTA discussions. "Commission VI of the House of Representatives supports the discussion on the ratification of the Preferential Trade Agreement between the Government of the Republic of Indonesia and the Government of the Islamic Republic of Iran," stated Deputy Chairman of Commission VI, Mohamad Haekal. This strategic move is expected to significantly enhance Indonesia’s export capabilities, fostering stronger economic ties with Iran and contributing to the nation's economic growth.
