September 8, 2025 | 10:34 am
TEMPO.CO, Jakarta - Indonesia's Ministry of Trade is aiming to finalize negotiations on the Free Trade Agreement (FTA) between Indonesia and Gulf countries (Indonesia–GCC FTA) by the end of this year.
The third round of talks between Indonesia and the Gulf Cooperation Council (GCC) took place on September 1-5, 2025.
“The third round of negotiations is an important step to accelerate the conclusion of the agreement,” said Djatmiko Bris Wijtaksono, Director General of International Trade Negotiations at the Ministry of Trade, in a written statement on Sunday, September 7, 2025.
According to Djatmiko, the discussions covered trade in goods and services, investment, rules of origin, economic cooperation, small and medium enterprises, and the Islamic economy. He expressed hope that the FTA would strengthen Indonesia’s economy and expand market access for the country’s leading products.
“This agreement is expected to open not only Gulf markets but also opportunities in the Middle East, Africa, and Europe,” he said.
Djatmiko emphasized the need for stronger inter-ministerial coordination to resolve outstanding issues and speed up technical talks, particularly those related to market access for goods and services.
Chief Negotiator Danang Prasta Danial added that the third round had produced “significant progress” across the negotiating framework.
“Indonesia and the GCC have reached an agreement on the Movement of Natural Persons (MNP) issue and advanced discussions on the draft text,” he explained. Danang noted that intersessional meetings will be held before the fourth round of negotiations.
The GCC is a political and economic alliance of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.
The Ministry of Trade projects that the FTA could raise Indonesia’s economic welfare by US$258.40 million and boost exports to the Gulf region by 17.4 percent. Export gains are expected across several sectors: electronics (33.86 percent), leather (29.3 percent), metal products (28 percent), manufacturing (27.7 percent), and textiles (30.7 percent).
In January–June 2025, total trade between Indonesia and the GCC reached US$7.9 billion, with Indonesia’s exports valued at US$4 billion and imports at US$3.9 billion. Indonesia’s main exports to the GCC include motor vehicles, palm oil and its derivatives, jewelry, machinery, and minerals
The country mainly imports crude oil, refined petroleum products, petroleum gas, semi-finished iron, and sulfur from the bloc.
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