Jakarta (Indonesia Window) – Indonesia and the United Arab Emirates (UAE) are preparing to launch the Indonesia–United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) negotiations in early September 2021.

“We welcome the launch of the IUAE-CEPA negotiations in September. The launch of the negotiations is expected to strengthen cooperative relations, especially in the trade and investment sectors, as well as promote economic recovery due to the COVID-19 pandemic," said Indonesian Trade Minister Muhammad Lutfi in a statement here, Monday (Aug. 30).

The IUAE-CEPA negotiations is scheduled to be launched by Indonesian Minister of Trade Muhammad Lutfi along with Emirates’ Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on September 2, 2021.

Indonesia is optimistic that this cooperation would stimulate the export market in the country.

The launch of the IUAE-CEPA negotiations will be marked by the signing of the Joint Ministerial Statement on the Launching of Negotiation for IUAE-CEPA. The first round of negotiations will be held on September 2-4, 2021.

Minister Lutfi said that the UAE is a strategic trading partner for Indonesia. Ahead of Expo 2020 Dubai, the Indonesian government wants to take advantage of this event to boost exports of local products to the Middle Eastern country.

"In addition, this step will open up opportunities for greater penetration of Indonesian products, not only in the Middle East, but also Africa and Europe," he said, adding that the launch of the IUAE-CEPA negotiations is also an effort to maintain good relations between the two heads of state.

“The IUAE-CEPA is expected to support the economic growth of the two countries through increasing market access for trade in goods, services, and investment. Besides that, it will also increase economic cooperation, including creating job opportunities for the people of the two countries," Lutfi said.

Meanwhile, Director General of International Trade Negotiations at the Indonesian Ministry of Trade, Djatmiko Bris Witjaksono, said that the UAE as a member of the Gulf Cooperation Council (GCC) is one of the non-traditional export markets that serves as an international trade hub to the Middle Eastern, African and European markets.

"So, this enhancement in cooperation will provide great benefits for both countries," he said.

In addition to launching the IUAE-CEPA negotiations, the launch will also feature Indonesia-UAE dialogue forum and business forum in a hybrid manner. The dialogue forum will be themed Unlocking the Potential and Building Momentum Towards the Indonesia and UAE Strategic Partnership.

At the forum, the governments of the two countries will discuss efforts to boost business interaction between the private sectors, and identify products that have potentials to grow through CEPA.

Meanwhile, the business forum will discuss opportunities in the investment, property, agriculture and food security, energy and renewable energy sectors, as well as logistics.

In 2020, the total value of the Indonesia-UAE trade was recorded at 2.93 billion U.S. dollars.

Meanwhile, the total trade between Indonesia and the UAE in the 2021 January-June period reached 1.86 billion dollars. In this period, Indonesia's exports to the UAE were recorded at 0.85 billion dollars.

Indonesia's main export commodities to the UAE include palm oil, jewelry, iron tubes and pipes, cars and motor vehicles as well as synthetic woven fabrics.

The value of Indonesia's imports from the UAE was recorded at 1 billion dollars.

Indonesia's main import commodities from the UAE include iron or steel semi-finished products, acyclic hydrocarbons, unwrought aluminum, colloidal precious metals, and propylene polymers.

Reporting by Indonesia Window