Other BriefingsDubai Chamber Sets Up An Office In Indonesia
Bilateral trade set to triple in five years
The Dubai International Chamber has inaugurated a new international representative office in Jakarta, Indonesia. The strategic step comes as part of the ‘Dubai Global’ initiative, which was launched by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, with the goal of establishing 50 integrated commercial representative offices worldwide by 2030.
The offices will attract foreign investment, talent, and new business from Indonesia to Dubai and vice versa, enabling Dubai-based companies to expand their businesses into Indonesia.
Last year, Indonesia and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA), heralding a new era of strategic cooperation.
The agreement aims to enhance bilateral trade between the two countries and increase its total annual volume from Dhs11 billion (US$3 billion) in 2021 to Dhs36.7 billion (US$9.8 billion) within five years. The two countries have eliminated or are gradually reducing (depending on the product category) tariffs for 99% of their commonly traded commodities.
The main products that United Arab Emirates exports to Indonesia are Petroleum Gas, Refined Petroleum, and Semi-Finished Iron. The main products that Indonesia exports to United Arab Emirates are Jewellery, Palm Oil, and Cars. There are significant opportunities for Halal product exports to Indonesia as it has a significant and increasingly wealthy consumer population.
Indonesia
GDP: USD1.2 trillion
GDP Per Capita: USD4,300
2023 Growth Rate: 4.8%
Population: 276 million
Indonesia is a member of the South-East Asian ASEAN free trade bloc, which also includes Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Previously a member of OPEC, Indonesia’s main trade is in oil and gas, minerals, crude palm oil, electrical appliances and rubber products. Via ASEAN it has Free Trade Agreements with Australia, New Zealand, Japan, South Korea, China, Hong Kong and India.
Indonesia is also a signatory to the RCEP FTA between ASEAN and Australia, China, Japan, New Zealand, and South Korea and has an agreement with Chile. Indonesia is negotiating other FTAs with the European Union (EU), India, Tunisia, and Turkey as well as reviewing its trade agreements with Japan and Pakistan. Its main trade partners are China, followed by the United States, Japan, Singapore and India.
Dezan Shira & Associates assist foreign investors into Asia and have done since 1992. The firm has offices in Dubai and Jakarta. Please email us at asia@dezshira.com for assistance.
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Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
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