REPUBLIKA.CO.ID, JAKARTA -- Indonesia and Palestine will soon sign Preferential Trade Agreement (PTA). Indonesian Trade Minister Enggartiasto Lukita said the free trade treaty will enable both countries to apply zero import duty for all commodities.
The PTA will be signed by August this year. If the deal is reached, it will be the fastest free trade agreement that has been successfully agreed upon in Indonesian history, Enggartiasto said.
"So far, Indonesia imposes zero tariff on two commodities from Palestine, namely olive oil and dates, based on MoU on the trade of goods signed in a sidelines of World Trade Organization Ministerial Conference in Buenos Aires, Argentina on December 2017," said Enggartiasto in a press conference after meeting Palestinian Ambassador to Indonesia Zuhair al-Shun at his office on Wednesday (May 23).
The memorandum of understanding has been approved by President Joko Widodo through the presidential regulation (Perpres) No. 34 of 2018. Since January this year, Indonesia has imposed free import duty for Palestinian olive oil and dates.
Trade ties with Palestine will be upgraded to the Preferential Trade Agreement in the near future, Enggartiasto said. Palestine will send its list of commodities to be exported to Indonesia. In return, Indonesian government also invites Palestine to import goods needed for its people from Indonesia, Enggartiasto said.
"We did not count the profit potency because the president has issued the decree to open our market as Indonesian support in economic sector to Palestine," Enggartiasto remarked.
Indonesian government have also anticipate the possible entry of illegal goods from Israel on pretext of being Palestinian products. Therefore, Indonesia will ensure the delivery of goods conducted directly by Palestinian. However, the delivery will still be from Lebanon.
Also read: Indonesia imposes zero tariffs on Palestinian products
Palestinian Minister of Trade will visit Indonesia to discuss and sign the PTA, Ambassador Zuhair said. He lauded Indonesian support to his country.
"The government and people of indonesia have shown a tremendous support for Palestine and we highly appreciate it," Ambassador Zuhair said.
Indonesian Ministry of Trade recorded import of dates and olive oils from Palestine reached 341 US dollar in 2017. Meanwhile, in the same year Indonesian export to Palestine was 2,05 million US dollar. The exported goods were coffee, tea, bread, soap, parfume, and pasta.
Currently, Palestine is the only nation in the world that is still gripped by colonialism. The Palestinians are striving for resistance against Israel as its colonist.
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