JakartaPost-May 24, 2023
Iranian President Ebrahim Raisi’s visit to Bogor Palace in West Java on Tuesday saw Jakarta and Tehran strengthen bilateral cooperation in trade and other sectors resulting in 10 agreements, underscoring the pragmatism of the two sides in the midst of a shift in the geopolitical landscape. Iran is aiming to boost its international trade ties to try and offset the economic impact of heavy Western and international sanctions, while Indonesia is intent on branching out its cooperation focus to nontraditional partners that aim for mutually beneficial outcomes. Notably, the Preferential Trade Agreement (PTA) was also signed as part of Jakarta’s effort to gain access to the Middle Eastern market by lowering tariffs on 230 trade items. Other agreements secured during the state visit included collaboration in the fields of information and technology, halal products, biology, medicine, processed food and the development of the energy sector, all of which were noted by Jokowi as efforts to increase the two countries’ trade, currently valued at US$250 million. An ambitious goal of increasing the trade value to $20 billion was set during the meeting. “Today, the officials of the two countries signed several documents for cooperation in various fields, which shows their determination to develop relations in all fields,” said Raisi while noting that all exchanges were done in their national currencies. The deal with Tehran has been a few years in the making but seizes upon the increasing trend of de-dollarization, whereby countries elect to transact using currencies besides the US greenback. Read more at:
