The Gulf Cooperation Council (GCC) and Indonesia have begun discussions for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry in Riyadh on Wednesday, as reported by the Saudi Press Agency (SPA). The occasion was marked by the signing of a joint statement by Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi. This agreement signifies the formal commencement of negotiations aimed at creating a comprehensive trade agreement to enhance trade and investment flows between the GCC member states and Indonesia.
The proposed FTA is anticipated to set up a framework for greater cooperation, simplify regulations related to investments, and generate new employment opportunities. This move highlights the commitment of both parties to strengthening their economic alliance and exploring new avenues for collaboration. GCC Secretary-General emphasized that the initiative to start FTA negotiations with Indonesia is in line with the GCC's strategic objectives of expanding relationships with significant international partners. He noted that Indonesia is a priority for the GCC as they seek agreements that mirror the mutual interest in bolstering economic connections.
The FTA is expected to be a pivotal platform for advancing the GCC's economic diversification strategies and realizing their broader economic visions. The first round of negotiations is planned to start in 2024, with an aim to finalize the agreement within the next 24 months. This pact is anticipated to facilitate increased economic cooperation and mutual growth between the GCC and Indonesia.
