TEHRAN (Iran News) – Tehran, Jakarta Urged to Implement Barter Trade, Deputy Head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Mohammadreza Karbasi in the meeting with the new Indonesian commercial counselor called for implementing barter trade with a mechanism accepted by both countries for imports and exports in order to advance their common goals.

In the meeting and pointing to the fact that Indonesia is the biggest and most populous Muslim country in the world, Karbasi said the country enjoys good potentials for cooperation. He further said the growing economic relations in the past years indicate the strong determination of both nations for developing their economic cooperation.

He then said that the trade volume of Iran and Indonesia was over $2b in 2011 and despite several fields for cooperation, the trade volume of both states has sharply declined with the intensification of the U.S. unilateral sanctions, and the bilateral trade fell to $240m in 2019. He stated fortunately the trade volume has bounced back in the first three quarters of 2020 and has stood at $740m and this rise is an indication of the high capacities of both countries for cooperation.

Karbasi also explained that some part of the trade between both countries is done indirectly and via Singapore, Dubai, and Malaysia and these two countries should increase their capabilities for expanding their trade.

He also pointed to the necessity of signing a preferential tariff agreement (PTA) and said ICCIMA has referred its request in this regards to the Trade Promotion Organization and it has also handed over the list of goods that can be used in barter trade and now it is the duty of Indonesian Embassy and its commercial counselors as well as ICCIMA to encourage tradesmen of both countries for cooperation.

Referring to the condition of banking relation of Tehran and Jakarta, he said there are different channels for advancing the common goals that both sides can pick up the cooperation with using them, adding that one of those channels is barter trade for imports and exports with a mechanism accepted by both states. He noted that for such a barter trade, both sides can open a special account in the banks of both countries for imports and exports of the required goods and financial exchanges. Karbasi also reiterated that banks should ease trade for the private sector.

He further said both countries should encourage investors for investing in the suggested fields, adding that this type of investment is a win-win trade for both countries which makes the bilateral tradition last longer.

Karbasi also talked about Iran’s import of palm oil, saying that Malaysia is the major palm oil-exporting country to Iran which is done on the barter traded basis, adding that he suggests Indonesia use barter trade for boosting trade with Iran. He reiterated Indonesia exports palm oil to Iran and in return imports dates and this can be done on a barter trade basis. Karbasi further said Indonesia can take advantage of Iran’s capabilities in technical and engineering services, health, and also transportation.

Then First Secretary of the Indonesian Embassy Ms. Siti Asiyah, for his part, called for holding trade webinars and meeting in the current COVID-19 pandemic condition.  She then said there are several fields for bilateral cooperation between both countries and called for access to the information about Iran’s regulations regarding imports and exports.

She said one of the items for exports to Iran which has been studied by the Indonesian government is palm oil as Iran imports over one million tons of palm oil from Malaysia and other countries, and Jakarta Indonesia is keen to cooperate in this field.

Siti Asiyah also added that the field of health is of the other priorities of Indonesia for cooperation with Iran, adding that some talks have been held with Iranian tradesmen in the nanotechnology sector for joint cooperation for medical equipment.

He also said Indonesia is to hold an online trade conference on February 3, 2021, and the conference is a good opportunity for introducing the capabilities and products of Indonesia.

Then the Third Secretary Ms. Novatiara, for her part, pointed to the financial and banking problems, and raised the issue of forming a banking workgroup during the state talks, and called for being provided with more information for barter trade in the order they could be studied. She added that on cooperation in the field of palm oil, talks have started for launching a palm oil refining plant in Sirjan, Kerman Province, and the Indonesian government is interested in investing in this field in Iran.

Then Indonesian Commercial Attach Dimas Prasetyo Wibowo, for his part, pointed to the decline in the volume of bilateral trade, saying that Indonesia exported 37,000 tons of palm oil to Iran in 2020 and the Indonesian government seeks stability in trade and economic cooperation with Iran. He also announced the interest of Indonesian companies in cooperation with Iran and expressed hope the trade barriers would be lifted soon.