Indonesia and Iran have signed a trade agreement during Iranian President Ebrahim Raisi's visit to Jakarta, hosted by Indonesian President Joko Widodo. The pact aims to enhance trade relations between the two countries and help offset the economic impact of Western and international sanctions on Iran. Despite facing sanctions and threats, President Raisi emphasized that cooperation with neighboring and Muslim countries, as well as aligned nations, remains a priority for Iran.
Under the trade agreement, Iran will facilitate easier access for Indonesian exports such as vegetable oil, cocoa, coffee, and tobacco. In return, Jakarta will reduce tariffs on Iranian exports to Indonesia, including oil, derivatives, minerals, chemicals, and iron. The signing ceremony, held at the Bogor Palace, included a total of 10 agreements between the two nations.
President Widodo expressed his hope that the agreement would expand bilateral trade between Indonesia and Iran. Currently, the total trade value between the two countries stands at just over $250 million in 2022. Raisi set a target of raising the value of two-way trade to $20 billion, highlighting the significance of strengthening economic ties.
President Raisi's visit comes amidst fresh European Union sanctions on Iran's Revolutionary Guard. The EU froze the assets of the investment arm of the Revolutionary Guard as part of penalties related to the violent crackdown on protests triggered by the death of Mahsa Amini. This marks the eighth round of EU sanctions imposed in response to the repression of these demonstrations.
The trade pact signed between Indonesia and Iran demonstrates their commitment to expanding economic cooperation and diversifying trade relationships. As both countries navigate the challenges of international sanctions, fostering stronger trade ties can contribute to their respective economic growth and resilience.
