Indonesia and UAE Plan Delegation to Boost US$3.14 Billion Trade

Trade Minister Budi Santoso and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi met in Jaipur on 7 August 2026 and agreed on a visit by a UAE business delegation to Indonesia. Both parties are targeting stronger trade ties, with total trade value for the first half of 2026 recorded at US$3.14 billion. Indonesia’s exports to the UAE during the same period reached US$1.76 billion, while imports stood at US$1.38 billion. The 2025 trade surplus was recorded at US$1.63 billion from a total of US$6.42 billion. Key export products include jewellery, oils and fats, vehicles, and machinery. Main import products include jewellery, salt, sulphur, aluminium, weapons, and plastics. The upcoming UAE business delegation is expected to act as a catalyst to strengthen bilateral trade relations. UAE Minister Thani Al Zeyoudi stated that direct meetings between business actors can identify new opportunities and accelerate investment, in line with the goal of maximising the IUAE-CEPA. He stressed the importance of intensive dialogue to address remaining obstacles, including tariff issues and technical regulations. If the delegation succeeds in building trust, the potential for increased export-import volumes could restore trade value to higher levels. Total trade in the first half of 2026 declined significantly compared to 2025, falling to US$3.14 billion from US$6.42 billion. This drop is reflected in exports of US$1.76 billion and imports of US$1.38 billion, both well below the 2025 figures of US$4.02 billion and US$2.39 billion respectively. The decline signals the need for more optimal utilisation of the agreement’s provisions, especially in key sectors such as jewellery, vehicles, and machinery. Although the IUAE-CEPA has been operational since September 2023, technical obstacles still hinder its full utilisation. Trade Minister Budi Santoso highlighted issues such as the Tariff Rate Quota scheme, transshipment mechanisms, and an unresolved antidumping case on copolymer products from the UAE. He affirmed Indonesia’s commitment to maintaining transparency and accountability in implementation to align with WTO principles, while opening continuous dialogue with business actors from both countries.