InfoSAWIT, JAKARTA – Indonesia keeps expanding the potential products to non traditional countries, including to Iran. To strengthen the exports from Indonesia to Iran, Preferential Trade Agreement (PTA) is done between delegation of Indonesia and Iran that has been in the fourth session, on 28-30 September 2017, in Jakarta. One agenda discussed is about to decrease export tariff from Indonesia to Iran that might be expensive enough.
“The forum is the real action for Indonesia that the stakeholders could have the advantage. The expensive export tarif to Iran might happen for the high tarif in Iran, and the payment transaction through the third side. By the decreasing tarif, the export cost to Iran would be smaller,” Director of Billateral Negotiation, Ministry of Trade, Ni Made Ayu Marthini who is also as the Chairman of Indonesia-Iran PTA Team, said, in the official statement to InfoSAWIT.
The delegation of Iran is led by Deputy for Export Market Development, Iran Trade Promotion Organization, Ministry of Industry, Mines and Trade,Mirhadi Seyedi. The fourth negotiation is the follow up from the third negotiation that was held on 8-9 July 2017 in Tehran, Iran.
“The previous negotiation was that the two countries focused to make the same perception and discussed the draft text f PTA, and there were some chapters to agree. In this negotiation, the discussion is substantial, that is, the modal, and the products which have decreasing tariff. It has something to do with the draft text of Rules of Origin,” Made said.
Made also mentioned, both countries agreed to solve the negotiation as fast as possible so that it could be implemented. “After the negotiation done, the two countries would agree to the next chapter and it would in schedule. It is hoped, before the midst of next year, there have been negotiation,” Made said.
In the fifth meeting, negotiation chairman of both countries would be more flexible and pragmatical to solve the negotiation itself and there would be qualified and profitable documents for both countries.
“Iran is the important and potential partner for Indonesia to expand the markets in Middle East region. Indonesia should not be fail with other partners which are and would negotiate with Iran. In this case, Free Trade Agreement (FTA) with Malaysia, PTA/FTA with Vietnam, FTA with Pakistan, and Iran would make Free Trade Zone with Eurasian Economic Union (EAEU),” Made explained.
The trade balance between Indonesia-Iran in 2013–2016 was always positive and surplus for Indonesia. The data in 2016 showed, the export from Indonesia to Iran reached US$ 235,19 millionand the import of Indonesia from Iran reached US$ 103,4 million. While the total trade between the two countries in January -July 2017 increased 201,82% compared to the same period in last year, 2016. The export from Indonesia to Iran in this period reached US$ 175 millionand the import of Indonesia from Iran reached US$ 208,2 million.
The main commodities of Indonesia to Iran are papper, paper products, and palm oil. While the commodities to import from Iran are crude oil, gypsum, products maded of iron, and steel, and sulfur. The tarif structure from Iran starts from 5%-55%, and more than 1/3 bigger than 15% in Iran. (T2)
