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May 19, 2016

The Iranian government has planned to strengthen economic ties with Indonesia. According to Iranian Economy and Finance Minister Tayeb Zadeh Nia, the economic ties between the two countries have been going well.

“Both countries have moderate views in various things that might happen,” Mr. Tayeb said at the Vice Presidential Office in Jakarta on Thursday, May 19, 2016.

Mr. Tayeb explained that the two countries had built strong economic ties before Iran was imposed with economic sanctions. However, the relationship loosened as the United States imposed sanctions against the country.

Mr. Tayeb revealed that Indonesia-Iran trade value before the sanctions reached US$2 billion. In the future, Mr. Tayeb hopes that the value would be achieved.

“We are convinced that the trade value in the medium term will reach US$5 billion,” he said.

Sectors to be improved in the cooperation, Tayeb added, were commodities, services, industries, power plants, and infrastructures, as well as nanotech development.

“We don’t see any limit in expanding the economic ties with Indonesia,” Mr. Tayeb said.

Vice President Jusuf “JK” Kalla said that the Indonesia had the opportunity to cooperate with Iran after the economic sanctions for the country were lifted. JK explained that the energy sector, particularly oil trade, would be the focus of the cooperation.

“Now, we want to improve the banking sector,” JK added.

JK did not provide details about the cooperation to be entered with Iran in the banking sector. JK viewed that the lifted sanctions against Iran would lead to a free trade.

Minister Tayeb visited Indonesia with three other delegations. The meeting lasted for 30 minutes. In addition to discussing economic issues, Minister Tayeb said that both countries were committed to counterterrorism efforts.

About Track Persia

Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.