GCC and Indonesia launches free trade agreement talks

The Gulf Cooperation Council (GCC) and Indonesia initiated negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry in Riyadh on Wednesday.

The event was highlighted by the signing of a joint statement by the GCC Secretary-General Jasem Mohamed Albudaiwi and Indonesian Trade Minister Zulkifli Hasan, Saudi Press Agency (SPA) reported. The agreement marks the official start of talks to forge a comprehensive trade deal to boost trade and investment between the GCC member states and Indonesia.

The proposed FTA is expected to establish a framework for increased cooperation, streamline regulations governing investments, and create new job opportunities. This development underscores both sides’ commitment to deepening their economic partnership and exploring new avenues for collaboration.

The GCC Secretary-General emphasised that the initiative to launch FTA negotiations with Indonesia aligns with the GCC’s strategic goals of expanding relationships with key international partners.

He highlighted that Indonesia is a priority for the GCC as they pursue agreements that reflect the shared desire to strengthen economic ties.

The FTA is anticipated to serve as a crucial platform for advancing the GCC’s economic diversification strategies and achieving their broader economic visions.

The initial round of negotiations is scheduled to commence in 2024, with a target completion date within the next 24 months. This agreement is expected to pave the way for enhanced economic cooperation and mutual growth between the GCC and Indonesia.

Earlier, Dubai International Financial Centre (DIFC) has signed a Memorandum of Understanding (MoU) with Indonesia’s Nusantara Capital Authority to enhance international financial cooperation.

Essa Kazim, Governor of DIFC, and M Basuki Hadimuljono, (Acting) Chairman of Nusantara Capital City Authority, signed the agreement at DIFC’s premises in Dubai.

The signing was witnessed by Erick Thohir, Minister of State Owned Enterprises; Dr. Agung Wicaksono, Nusantara Capital Authority Deputy of Funding and Investment; and Endra S. Atmawidjaja, Ministry of Public Works and Public Housing of Indonesia, Senior Advisor to the Minister on Technology, Industry, and Environment; Arif Amiri, Chief Executive Officer of DIFC Authority; and Salmaan Jaffery, Chief Business Development Officer at DIFC Authority.

The MoU outlines a framework for collaboration aimed at advancing mutual interests and the Nusantara Financial Centre in Ibu Kota Nusantara (IKN). The agreement outlines exchanging expertise in International Financial Centre operations, including regulatory frameworks and business models to enhance operational efficiency and innovation; developing mechanisms enabling entities from DIFC and IKN to ultimately establish registered

WAM