9-9-2023 (JAKARTA) In a historic move under the Indonesia-UAE Comprehensive Economic Partnership Agreement (IUAE-CEPA), Indonesia has initiated its maiden export shipment to the United Arab Emirates (UAE). The inaugural shipment, consisting of gold jewelry valued at an impressive US$6.98 million, reached the bustling city of Dubai on a Friday, as reported by the Indonesian embassy in Abu Dhabi through a press release issued on Saturday.
“This is a positive sign… I firmly believe that the growing volume of exports from Indonesia to the UAE will pave the way for increased investments in Indonesia’s future,” proclaimed Husin Bagis, the Indonesian Ambassador to the UAE.
The IUAE-CEPA, officially effective since September 1, 2023, marks a significant turning point for Indonesia as it stands to reap substantial benefits from the UAE’s elimination and reduction of import duty rates. Among the Indonesian products that will see a welcome tariff reduction or complete elimination are jewelry, paper products, palm oil, soap, motor vehicles, butter, iron and steel products, electrical equipment and electronics, wood pulp, vehicle tires, footwear, batteries, fabric products, coal, and clove.
This groundbreaking agreement is noteworthy not only for its economic significance but also for its historic nature. The IUAE-CEPA represents Indonesia’s maiden bilateral economic pact with a member state of the Gulf Cooperation Council (GCC). Impressively, the negotiations surrounding this comprehensive agreement were concluded in a remarkably swift nine months.
Experts anticipate that the IUAE-CEPA will act as a catalyst, propelling the total trade value between these two nations to soar beyond the US$10 billion mark within the next three years.
The scope of the IUAE-CEPA is truly encompassing, covering trade in goods, trade in services, investment, intellectual property rights, Islamic economics, provisions of origin of goods, customs procedures and trade facilitation, economic cooperation, government procurement of goods and services, small and medium enterprises, digital trade, as well as legal provisions and institutional issues.
