Leaders of Iran and Indonesia Sign Preferential Trade Agreement

On Tuesday, May 23, leaders of Iran and Indonesia signed a preferential trade agreement in Jakarta aimed at expanding economic relations between the two countries. Joko Widodo, the President of Indonesia, expressed hope that this agreement would increase trade between the two nations following the signing ceremony with Ebrahim Raisi, the President of the Islamic Republic of Iran. According to Reuters, under this agreement, Indonesia will have greater access to Iranian products such as pharmaceuticals, textiles, and tea, while Indonesia will reduce tariffs on Iranian oil, chemical products, metals, and dairy. Meanwhile, an official from Indonesia's Ministry of Trade stated that Iran could serve as a gateway for Indonesia to the region, even to Turkey, especially since Indonesia lacks any trade agreement with Turkey. According to Reuters, Ebrahim Raisi's visit to Indonesia comes at a time when Tehran's ties with the West are increasingly strained following the violent crackdown on protesters in Iran by security forces. Several countries, including the United States, have imposed extensive sanctions due to the Islamic Republic's nuclear program and numerous human rights violations against Iran. The trade volume between Iran and Indonesia decreased from $715 million in 2019 to $141 million following the imposition of U.S. sanctions against Iran. Currently, the trade value between the two countries is about $250 million.