Rapid increase in bilateral trade, tourist traffic reflects booming Indonesia-UAE ties: Indonesian Envoy
ABU DHABI, 13th November, 2023 (WAM) — A rapid increase in Indonesia-UAE bilateral trade since the enforcement of Comprehensive Economic Partnership Agreement (CEPA) on 1st September 2023, and a surge in tourist traffic reflect comprehensive growth in bilateral relations, Husin Bagis, the Indonesian Ambassador to the UAE, told the Emirates News Agency (WAM).
“The first UAE-Indonesia Joint Committee Meeting (JMC) held in Abu Dhabi last week reviewed such positive developments in all sectors. The JMC also discussed the measures to maintain momentum for further improving the ties,” he added in an interview.
Zero-tariff jewellery – CEPA’s impact
The UAE’s zero import tariff on gold jewellery, a direct impact of CEPA, has significantly increased the exports from Indonesia, Bagis said. “Within a week of CEPA taking effect, Indonesia exported its first consignment of gold jewellery to the UAE valued at US$6.98 million (AED25.64 million). In just 40 days, a second consignment worth US$280 million (AED1.03 billion) was sent, totalling gold jewellery exports at US$286.98 million (AED1.05 billion),” revealed Bagis.
Before Indonesia-UAE CEPA framework existed, Indonesia annually exported gold jewellery valued at around US$300 million, to the UAE market that is worth more than a couple of billion dollars, he noted.
Earlier, high import tariffs limited direct exports of Indonesian gold jewellery to the UAE, and a large amount of jewellery was re-exported to the UAE through third countries that had already signed Free Trade Agreement (FTA) with the UAE, the envoy explained.
$10 bn trade on track
With CEPA, gold jewellery enjoy zero import tariff in the UAE, along with some other Indonesian products such as 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, Bagis explained. “This encourages more imports from Indonesia. Likewise, zero import tariffs will increase UAE petrochemical exports to Indonesia,” he added.
Therefore, the ambassador is optimistic that the UAE and Indonesia will achieve their goal of increasing annual bilateral trade to US$10 billion within 3 years.
Tourism, education, people-to-people ties
The tourist traffic from the UAE to Indonesia has witnessed a substantial increase this year, the ambassador said. “In 2022, there were 5456 tourists, but in the first nine months of 2023 (up to September), 6314 tourists have been recorded, a 15.7 percent increase over the last year.” He expects that the number will further increase in near future, enhancing the people-to-people and cultural relations.
In recent years, Indonesian imams and students have been building bridges between the two peoples. “Currently, there are 70 imams across the country and around 90 Indonesians studying in universities in the UAE. We expect more in the future.” Likewise, Indonesia also welcomes UAE students who want to study in Indonesia, the envoy added.