JAKARTA: The Gulf Cooperation Council and Indonesia on Wednesday signed a deal to start long-awaited talks for a free trade agreement, which the Indonesian government expects to enhance the country’s presence in the Middle East.
Indonesia already has signed a Comprehensive Economic Partnership Agreement with the UAE, its first with a Gulf state.
After the agreement entered into force last September, Indonesian officials have been working to strengthen trade ties with other members of the group.
The agreement to start the negotiations was signed in Jakarta by GCC Secretary-General Jassim Mohammed Al-Budaiwi and Indonesia’s Trade Minister Zulkifli Hasan.
“This is historic. GCC comprises countries with strong economies and high purchasing power. We have relations that go way back, but our trade is small,” Hasan told reporters.
“Hopefully, we will conclude negotiations in two years. This is just the launch, so it’s going to be a marathon and we will start negotiating in September … It’s been years since we first started proposing an agreement, but it’s only today that we are launching the talks.”
He added the first round of talks is scheduled to take place in September. Indonesia’s trade with GCC countries stood at around $15.7 billion last year, with its main export items including coffee, palm oil, jewellery and motor vehicles.
A free trade agreement with the group is expected to help Indonesia enhance its ties with the region. Al-Budaiwi told reporters in Jakarta that the Gulf nations are also interested in greater cooperation with Indonesia.
“Trade with Indonesia is multifaceted and very developed. The most important thing from our meeting today is that we want to open up new sectors,” he said.
