JAKARTADAILY.ID – The Directorate General of National Export Development (Ditjen PEN) under the Ministry of Trade has signed a trade promotion cooperation agreement with the Iran Trade Promotion Organization (ITPO) in a bid to strengthen bilateral trade relations.
The agreement was formally signed by Director General of National Export Development, Didi Sumedi, and ITPO President Alireza Peyman Pak at the Bogor Palace in West Java on Tuesday, May 23, 2023.
The agreement was signed during the visit of Iranian President Seyed Ebrahim Raisi to Indonesia, which took place on May 23-24 upon the invitation of President Joko Widodo.
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"Indonesia and Iran have established robust trade relations. Through this trade promotion cooperation, we aim to introduce products and services to each other, thereby expanding business opportunities and bilateral trade volume," explained Didi.
Apart from trade promotion, Indonesia and Iran have also agreed on collaborations in various sectors, including energy, pharmaceuticals, health products, food products, customs, bilateral trade facilitation, science and technology, and culture.
"A strong trade promotion cooperation can create a conducive environment for bilateral investments, benefiting both Indonesia and Iran. It can also encourage product diversification, cater to respective market needs, and identify opportunities for developing new export products," Didi added.
The signing of this agreement is aimed at strengthening organizational ties and enhancing trade and investment relations between the two countries. The cooperation encompasses activities such as exchanging trade information and opportunities, organizing trade missions and buying missions, sharing experts, promoting trade activities, and participating in trade shows in both nations.
"Through trade promotion cooperation, Indonesia and Iran can share market knowledge and relevant business information. This includes consumer trends, market preferences, trade regulations, and government policies. Such knowledge can help companies from both countries make informed decisions and minimize trading risks," emphasized Didi.
ITPO, an organization under the Ministry of Industry, Mines, and Commerce of the Islamic Republic of Iran, initially proposed the trade promotion cooperation agreement. The partnership will last for two years, with the possibility of automatic extension if both parties deem it necessary.
"In a changing global landscape, economic cooperation serves as the foundation for building stronger and mutually beneficial relations between the two countries. Therefore, the cooperation between the government and the private sector plays a vital role in facilitating effective trade promotion between Indonesia and Iran," concluded Didi.
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In the first quarter of 2023, Indonesia's non-oil and gas exports amounted to USD 47.9 million. In 2022, the total trade between Indonesia and Iran reached USD 257.2 million, with oil and gas trade accounting for USD 2.5 million and non-oil and gas trade amounting to USD 254.7 million.
Indonesia enjoyed a trade surplus of USD 227.9 million. Furthermore, Indonesia's non-oil and gas exports to Iran in 2022 were recorded at USD 242.6 million, representing a 30 percent increase compared to 2021.