The Indonesian government is stepping up negotiations on key international trade agreements as part of its strategy to bolster national economic welfare. According to Trade Minister Budi Santoso, a primary focus is finalizing the trade deal between Indonesia and the Gulf Cooperation Council (GCC) by the end of 2025. The GCC comprises six Middle Eastern countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar. The minister believes that once implemented, the deal could boost Indonesia’s welfare with economic gains of about USD 258.4 million and expand exports to the Gulf region by 17.4%—especially products such as electronics (+33.9%), leather (+29.3%), metal products (+28%), manufacturing goods (+27.7%), and textiles (+30.7%).
In addition to the GCC agreement, Indonesia is pushing for trade deals with other regions, including Africa and Europe, to broaden export markets and improve the national trade balance. For instance, negotiations are underway with partners such as South Africa, Eurasian Economic Union (EAEU), Tunisia, Mercosur, Canada, Turkey, and Peru. These agreements are aimed at reducing tariff and non-tariff barriers, enabling Indonesian small and medium enterprises to access global markets, and supporting strategic industrial growth. Through these efforts, the government hopes to diversify commodity exports beyond traditional sectors, strengthen the domestic industry’s competitiveness, and ultimately enhance long-term economic stability.
