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 Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi, 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.