The Indonesian government is set to sign the Indonesia-Gulf Cooperation Council Free Trade Agreement (Indonesia-GCC FTA) on July 31, 2024. The Minister of Trade, Zulkifli Hasan (Zulhas), welcomes this upcoming cooperation with optimism, believing it will boost Indonesia's exports to the Gulf region.

Key Point:

• The GCC is an economic and political union consisting of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar
• This signing event will also mark the commencement of the first round of negotiations in September
• The overall trade between Indonesia and the GCC from January to May 2024 totaled USD 6.2 billion
• Indonesia exported goods worth USD 2.7 billion to the GCC, while imports from the GCC into Indonesia amounted to USD 3.5 billion

Courtesy Source: Aulia Damayanti

Courtesy Photo : Photo by Pavel Neznanov on Unsplash

"We welcome the planned launch of the I-GCC FTA negotiations on July 31. We hope that the initiation of these negotiations will strengthen cooperation, particularly in trade and investment, between Indonesia and the Gulf countries," said Zulhas in a statement quoted on Tuesday (30/7/2024).

Read More: Indonesia and the United Arab Emirates Strengthen Bilateral Cooperation

The agreement is expected to facilitate Indonesian product exports to the Middle East. The GCC is an economic and political alliance comprising six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.

The launch of the I-GCC FTA negotiations will be marked by the signing of the Joint Statement on The Launching of The Negotiation on The Free Trade Agreement between The Republic of Indonesia and The Gulf Cooperation Council by Zulhas and GCC Secretary General Jasem Mohamed Albudaiwi on Wednesday, July 31.

This signing event will also signify the beginning of the first round of negotiations in September.

Zulhas stated that the GCC is a highly strategic trading partner for Indonesia. The government aims to use this opportunity to increase exports of local products to the Gulf countries within the GCC, namely Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman.

"This step will open up greater opportunities for the penetration of Indonesian products not only in the Gulf countries but also in other regions of the Middle East, Africa, and Europe," Zulhas Quotes.

A similar sentiment was expressed by Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at the Ministry of Trade. According to him, the I-GCC FTA will be Indonesia's third trade agreement with trading partners in the Middle East, following trade agreements with the United Arab Emirates and Iran.

"The I-GCC FTA is expected to support the economic growth of both parties by increasing market access for trade in goods, services, investment, economic cooperation, and cooperation in the field of Islamic economics," added Djatmiko.

The total trade between Indonesia and the GCC during the period of January-May 2024 reached USD 6.2 billion. Of this amount, Indonesia's exports to the GCC amounted to USD 2.7 billion, while Indonesia's imports from the GCC reached USD 3.5 billion.

Read More: How Qatar is Shaping Education for the Future

In 2023, the total trade between Indonesia and the GCC reached USD 15.7 billion. Indonesia's exports amounted to USD 6.1 billion. Indonesia's main export commodities included cars and motor vehicles, palm oil, jewelry, lighthouses, paper, and uncoated paperboard. Meanwhile, Indonesia's imports amounted to USD 9.6 billion. Major non-oil and gas import commodities included semi-finished products made of iron or non-alloy steel, acyclic alcohols, sulfur, ethylene polymers, and unwrought aluminum.

Courtesy Source: https://finance.detik.com/berita-ekonomi-bisnis/d-7464399/ekspor-ri-bakal-mudah-ke-arab-saudi-hingga-qatar-dengan-perjanjian-ini