From: Antara NewsJakarta (ANTARA News) - Indonesia is ready to ratify the Preferential Trade Arrangement (PTA) of the Organization of Islamic Countries (OIC), a trade ministry official said.
The trade ministry`s director general of international trade cooperation, Gusmardi Bustami, said here on Thursday the ratification would increase the country`s trade relations with OIC members.
"I saw a good opportunity here as trade among Islamic countries is good," he said adding Muslim countries contribute 10 percent to total world trade worth more than US$1.4 trillion.
He said Indonesia would be able to enjoy reduction in import tariffs for its commodities to OIC member countries joining the PTA.
He said in the next five years the import tariff for commodities of above 25 percent would be cut to 25 percent while that between 15 and 25 percent would be reduced to 10 percent. "And that of 10 percent will be dropped to one percent," he said.
He said the reduction was not big but it was a progress in the trade with Islamic countries because Arab countries general impose high import tariffs for commodities entering there.
The PTA of the OIC is aimed at promoting trade among OIC members, done through an exchange of preferences based upon equality and non-discriminatory treatment covering tariff easing, non-tariff or preferential treatment for all commodities including agricultural, farm and industrial commodities.
Gusmardi said the OIC`s PTA had already been ratified by nine member countries, namely Iran, Turkey, Nigeria, Malaysia, Brunei Darussalam, Saudi Arabia and the United Arab Emirates. (*)