Iran expects major trade boost with Indonesia following the Preferential Trade Agreement

Iran anticipates a significant increase in its annual trade with Indonesia following the implementation of a Preferential Trade Agreement (PTA) officially confirmed last week by the Iranian presidency. This is reported by Press TV, a partner of TV BRICS.

The trade agreement, which came into effect on October 13, will lead to substantial growth in trade between the two nations. The source claims that Iran's administrative bodies are awaiting an official announcement from the country’s Ministry of Commerce to begin implementing the agreement. The deal will allow Iran to dramatically boost its exports of steel, petrochemical products, and asphalt to Indonesia by lowering tariffs on these export goods.

Iran and Indonesia finalised negotiations on the PTA during former President Ebrahim Raisi’s visit to Jakarta in May last year. The current Iranian President, Masoud Pezeshkian, officially approved the agreement after it was ratified by the Iranian parliament last week, paving the way for its implementation by the country's customs authorities.

The trade with Indonesia offers numerous advantages for Iranian businesses compared to other countries, citing strong political ties and shared cultural and religious values that make the bilateral trade relationship especially attractive.

A direct flight between Tehran and Jakarta is also under consideration to further support Iranian businesses operating in the Southeast Asian nation.

Photo: iStock