Indonesia and Iran Sign Preferential Trade Agreement

The presidents of Indonesia and Iran signed a preferential trade agreement today, Tuesday, to help expand economic relations, during an official visit by Iranian President Ebrahim Raisi. Indonesian President Joko Widodo expressed hope that the agreement would "increase the volume of trade between Indonesia and Iran," but did not provide any details. Several countries, including the United States, have imposed wide-ranging sanctions on Tehran due to its nuclear program and accusations of human rights violations. The volume of trade between Indonesia and Iran decreased from $715.5 million to $141.6 million in 2019, after Washington imposed sanctions on Tehran. Under the agreement, Iran will broaden access for Indonesia to products such as processed foods, pharmaceuticals, textiles, palm oil, coffee, and tea, while Indonesia will reduce tariffs on Iranian oil, chemical products, minerals, and certain dairy products.