Indonesia has officially launched negotiations for a free trade agreement with the Gulf Cooperation Council (GCC) countries, aiming to enhance the market presence of its palm oil, coffee, and other key commodities in the Middle East. The initiation of the Indonesia-GCC Free Trade Agreement (IGCC-FTA) was marked by the signing of a Joint Statement by Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi on 31 July 2024. Minister Zulkifli Hasan emphasized that the IGCC-FTA negotiations present a significant opportunity to strengthen Indonesia's trade relations with the GCC countries—Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Oman, and Kuwait. Despite long standing historical ties, trade between Indonesia and the GCC has been limited. The negotiations, which began two years ago, are seen as a strategic move to capitalize on the substantial economic potential of both regions.
Indonesia aims to expand its exports to the Gulf, focusing on palm oil, coffee, jewelry, vehicle parts, textiles, and labor services. Minister Hasan called for a collaborative effort to enhance trade between the two regions, noting Indonesia's large economic size. GCC Secretary-General Jasem Mohamed Albudaiwi highlighted the key areas to be addressed in the IGCC-FTA negotiations, including trade in goods and services, customs, Islamic economy, investment, SME trade, mining, trade barriers, plant sanitation, economic cooperation, and intellectual property rights. Albudaiwi expressed confidence that the IGCC-FTA would significantly boost trade values between Indonesia and the GCC, opening new markets for a diverse range of products. This agreement is expected to strengthen economic ties and create new trade and investment opportunities, benefiting both Indonesia and the GCC member states.
