VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

VOInews, Jakarta: Minister of Trade Zulkifli Hasan is optimistic that Indonesia-United Arab Emirates (UAE) trade and economic relations will increase. The increase was driven by the implementation of the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE CEPA) which officially took effect on September 1, 2023.

"I am optimistic that trade between Indonesia and the UAE will increase, especially with the implementation of the IUAE CEPA on September 1, 2023," he said during a bilateral meeting with UAE Minister of State for Foreign Trade Thani Bin Ahmed Al Zeyoudi, in Jakarta, Sunday (3/9/2023), as quoted from a statement by the Indonesian Ministry of Trade.

The total trade between Indonesia and the United Arab Emirates in the January-June 2023 period was recorded at USD2.21 billion. Of this value, Indonesia's exports to the United Arab Emirates amounted to USD1.20 billion and Indonesia's imports from the United Arab Emirates amounted to USD1.02 billion.

Meanwhile, in 2022, the total trade between the two countries reached USD5.05 billion, an increase compared to the previous year which was recorded at USD4.03 billion.

At the meeting, Minister of Trade Zulkifli Hasan also proposed that a Joint Committee Meeting (JCM) at the Senior Officials level and certain Committees (Goods Trade Committee and Islamic Economy Committee) be held between the two countries. The goal is that the implementation of IUAE CEPA runs smoothly.

"With the implementation of the new IUEA CEPA, there are a number of technical issues that need to be resolved immediately between the two countries. For this reason, Indonesia proposes to the UAE to immediately hold a Joint Committee Meeting (JCM) at the Senior Official level and certain Committees (Goods Trade Committee and Islamic Economic Committee) between the two countries to resolve technical issues to ensure the smooth implementation of the agreement," he said.

Indonesia, he added, also encourages cooperation between the two businesses, for example through the Indonesia-UAE Business Forum, business roadshows, trade missions, and collaboration between the Indonesian Free Trade Agreement (FTA) Center and related parties in the UAE.

Minister of Trade Zulkifli Hasan explained that the Indonesian Government has issued five related technical regulations for the implementation of IUAE CEPA, namely the Minister of Finance Regulation (PMK) on the Determination of Import Duty Tariffs, PMK on the Procedures for Imposing Import Duty Tariffs on Imported Goods, and Minister of Trade Regulation (Permendag) Number 28 of 2023 concerning Provisions on the Origin of Goods and Provisions for the Issuance of Certificates of Origin for Goods of Indonesian Origin.

In addition, Minister of Trade Regulation No. 29 of 2023 on the Policy of Tariff Rate Quota Application for Import of Certain Goods and Minister of Industry Regulation No. 22 of 2023 on the Utilization of Tariff Rate Quota for Import of Certain Plastic Raw Materials. Minister of Trade Zulkifli Hasan also said that Indonesia continues to strive to implement the results of the 12th Ministerial Conference (MC) of the World Trade Organization (WTO).

"I support the successful organization of the 13th WTO Ministerial Conference which will be held in February 2024 in Abu Dhabi," he said.

Meanwhile, UAE Minister of State for Foreign Trade Thani Bin Ahmed Al Zeyoudi hoped that the implementation of IUAE CEPA will further enhance the business to business (B to B) relationship between the two countries. To encourage this, the UAE Government plans to conduct a business delegation visit to Indonesia on September 20-21, 2023.

"I propose the involvement of the Indonesia-UAE business council to support the improvement of trade performance between the two countries," Minister Thani said.

Furthermore, Minister Thani informed about the 2023 United Nations Climate Change Conference (COP28) which will be held on November 30-December 12, 2023 in Dubai.

"We hope that Indonesian President Joko Widodo can attend the event," he added. (VOI/Andy)