Iran, Indonesia to Ink PTA to Strengthen Bilateral Economic Ties
- May, 23, 2023 - 11:20
- Economy news
TEHRAN (Tasnim) – Indonesia and Iran will sign a Preferential Trade Agreement (PTA) on Tuesday to improve trade relations and boost the trade transaction value, Indonesia’s Trade Ministry said.
The Ministry's Director General of International Trade Negotiations Djatmiko Bris Witjaksono said that it will be the second agreement between Indonesia and the West Asian region as the first was signed with UAE on July 1, 2022.
According to Djatmiko, the PTA signing will be carried out within the framework of Iranian President Ebrahim Raisi's two-day official visit to Indonesia, Vietnam Plus reported.
During his visit, the two countries will also hold a bilateral meeting to discuss further trade cooperation potential.
The PTA signing will continue with the ratification process, with each country formulating its own mechanism. The products that will be listed with the framework of PTA will include processed foods, pharmaceutical products, rubber, paper, textiles, wood, footwear, cotton, electrical machinery, motorized vehicles, manufacturing products, chemicals, and aluminum.
Indonesian products that are quite popular in the Iranian market such as vegetable oil, cocoa, coffee, tea, spices, fruits, vegetables, and fish, will also be given preference in the PTA.
Meanwhile, Indonesia will provide lower tariff facilities for several products originating from Iran, including mineral fuel, oil and its derivatives, chemicals, steel, pharmaceuticals, mechanical equipment, fruits, processed foods, nuts, and wheat.
Djatmiko emphasized that the PTA is very important as Iran is considered a country with huge economic capabilities in the West Asian region and vast natural resources.