Iran's economic condition remains resilient amidst illegal sanctions by the United States and its allies.

Jakarta (Indonesia Window) – Iranian Deputy Foreign Minister, Dr. Mohammad Hasan Sheikholeslami, is optimistic that the Preferential Trade Agreement between Indonesia and Iran (Indonesia-Iran Preferential Trade Agreement/II-PTA) signed on May 23, 2023 at the Bogor Palace, West Java, would be beneficial.

"The trade tariff agreement agreed by the two countries has been ratified by the Iranian parliament, and approved by the Constitutional Guardian Council. Thus, this agreement has become a law in Iran," Dr. Mohammad Hasan Sheikholeslami, who is also the president of the Institute for Political and International Studies (IPIS) explained at a media gathering here on Tuesday (Aug. 13) evening.

Meanwhile, on the Indonesian side, on July 8, the Ministry of Trade and Commission VI of the Indonesian House of Representatives agreed to ratify the Preferential Trade Agreement between Indonesia and the Islamic Republic of Iran.

"In Indonesia, the legal process has been taken. If the administrative aspects are complete, then there should be no other obstacles to take advantage of this opportunity," Dr. Sheikholeslami pointed out.

Likewise, he expressed high optimism towards this agreement because it would affect trade between the two countries. "Hopefully in the near future we can see the implementation of this agreement so that we can witness its development."

The IPIS president emphasized that Iran's economic conditions remain resilient amidst the illegal sanctions by the United States and its allies.

"Iran is a big country, with abundant energy and mineral resources, and advanced industry. Therefore, there are very large and attractive economic opportunities," he noted, while explaining that Iran's location at the meeting point of three important regions, namely Asia, Africa and Europe, and has sea and land borders with 15 countries is another advantage of the economy of this country in Southwest Asia.

"Iran's human resources are also smart and this is Iran's great potential. Therefore, even though Iran has been under illegal US sanctions for 40 years, which have cost Iran billions of dollars and hampered its development, Iran continues to make progress in science, technology and economy," Deputy Foreign Minister Sheikholeslami explained.

According to him, the development of nanotechnology and nuclear energy for peace in Iran is among the top five in the world.

"Economic breakthroughs made with neighboring countries China and Russia in the east, as well as Latin America and Africa have made Iran's economy survive, safe, and increasingly advanced, reaching five percent,"  Dr. Sheikholeslami said.

The normalization of relations between Iran and neighboring countries Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain has also helped advance Iran's economy.

"Sanctions are a big blow, but we continue to take the path of progress. Sanctions actually create opportunities for Iran. Countries that impose sanctions on Iran have limited investment and economic opportunities with Iran, so that they do not get big profits from Iran," he continued.

Meanwhile, according to the Indonesian Minister of Trade Zulkifli Hasan some time ago, through the Preferential Trade Agreement between the Republic of Indonesia and the Islamic Republic of Iran, Indonesia received the elimination and reduction of tariffs on 239 tariff posts (PT).

The tariff posts include mineral, industrial, agricultural, and fishery products. After the implementation, Indonesia's exports to Iran are projected to reach 494 million US dollars in 2030, and will enjoy a surplus of 468 million dollars.

Reporting by Indonesia Window