Indonesia, Iran To Optimize Trade Relations

Jakarta (Antara Bali) -- Indonesia met with the Iranian government to discuss recovering the export performance by optimizing exports, Coordinating Minister for Economic Affairs Sofyan Djalil said here on Tuesday.

The export of crude palm oil, paper, rubber and other commodities will be optimized.

"We held a meeting with the joint economic commission for the first time in six years. This delay made our trade balance with Iran drop drastically," Djalil stated.

He added that the decline of the trade value between the two countries was a major concern of both governments.

Indonesia is expanding its export markets in countries with which it has less optimal trade cooperation, including Iran.

The expansion of its export markets is also aimed at dealing with the economic slowdown that hit Indonesia's major trading partner countries, such as China and European nations, Djalil explained.

The minister pointed out that in 2014, the trade value of Indonesia and Iran amounted to only US$448.6 million, while in 2013, the value of trade between the two countries reached US$568 million.

The figures were quite disappointing because the trade value of the two countries had reached US$2 billion.

Earlier, Indonesia's exports to Iran were dominated by palm oil derivative products, paper, wooden products, rubber and tuna, whereas non-oil imports from Iran were dominated by methanol, asphalt, dates, black tea and wine.

"After reassessment, we found that we have a lot of potential export products such as palm oil, paper, rubber and tires," Djalil affirmed, adding that the government wants to expand trade cooperation with Iran in the oil and gas sectors.

He further noted that the government is exploring the possibility of buying crude oil directly from Iran. (WDY)