We can at least obtain 2-3 times bigger than the previous number (in terms of trade value). We are optimistic that this figure will be achieved because there are several promising fields
Jakarta (ANTARA) – The Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) will boost trade between the two countries by at least two-three times, Trade Minister Muhammad Lutfi has said.
Addressing an online press conference from the Presidential Office on Friday, Lutfi said that based on the latest data, the value of trade between Indonesia and the United Arab Emirates (UAE) is pegged at US$2.9 billion.
“We can at least obtain 2-3 times bigger than the previous number (in terms of trade value). We are optimistic that this figure will be achieved because there are several promising fields,” the minister asserted after accompanying President Joko Widodo, who received an honorary visit from the UAE Minister for Foreign Trade, Thani bin Ahmed Al Zeyoudi.
Indonesia, in 2020, sold gold and gold jewelry worth US$8.2 billion to foreign countries, he informed later. These commodities are the fifth largest of non-oil and gas exports, he said.
“Of this figure, 37 percent went to transit countries and those transit countries already have trade agreements with the UAE, so almost all of the gold and gold jewelry items are sold from transit countries to the UAE,” he pointed out.
At the same time, Indonesia sold just US$76 million in gold and gold jewelry to the UAE directly, Lutfi informed.
“That happens because of the trade agreement. It means selling Indonesian goods is 5 percent cheaper because the tax is low compared to buying directly from Indonesia,” he said.
Therefore, this trade agreement is an important step and is one of Indonesia’s efforts to export goods to other destination countries, which are non-traditional markets, such as Africa and the Arabian Peninsula, he added.
“This is an agreement between me and Minister Zeyoudi that we will resolve this on the basis of friendship, making new friends, and seeking new business and trade with the two countries,” Lutfi emphasized.
The Trade Minister said that the two countries are trying to finish the negotiations at the first opportunity so that the discussion completion period of the trade pact will not be more than one year.
“Hopefully, on November 4 (2021), when the President visits the UAE, the agreement is almost complete or in finalization,” he added.
Source: ANTARA News