Trade Minister Budi Santoso Pushes for Optimal Use of IUAE-CEPA to Strengthen Indonesia-UAE Trade
Indonesian Trade Minister Budi Santoso held a bilateral meeting with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on Friday (7/8) in Jaipur, India. The meeting took place on the sidelines of the BRICS Trade Ministers’ Meeting (TMM) 2026, held on 6–7 August 2026.
One of the key topics discussed was how both countries can optimise the utilisation of the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA). The agreement has now entered its third year since coming into force on 1 September 2023. Minister Budi Santoso assessed that the implementation of the agreement has contributed positively to strengthening economic relations between Indonesia and the UAE.
“The IUAE-CEPA has become a catalyst driving our trade and economic cooperation to a more advanced level. I believe there remains significant room to further increase trade, investment, and economic cooperation through optimal utilisation of the IUAE-CEPA,” said Minister Budi Santoso.
To support implementation, Indonesia and the UAE held the first Joint Committee Meeting (JCM) along with meetings of the Committee on Trade in Goods, Islamic Economy Committee, and Economic Cooperation Committee on 15–17 October 2024. These forums produced a number of follow-up actions for implementing the IUAE-CEPA in areas including trade in goods, Islamic economy, and economic cooperation. Minister Budi Santoso expressed hope that the next JCM would proceed smoothly.
“I hope the second Joint Committee Meeting this year can serve as a momentum to swiftly resolve all remaining implementation issues. I believe Indonesia and the UAE share the same commitment to maximising the benefits of IUAE-CEPA. With increased utilisation of the agreement, business participation will broaden and trade and investment ties between the two countries will grow stronger,” he explained.
The two ministers also discussed several IUAE-CEPA implementation issues, including provisions on the Tariff Rate Quota (TRQ) scheme, transshipment mechanisms, and developments in the antidumping case involving copolymer products from the UAE.
“Indonesia is committed to keeping IUAE-CEPA implementation transparent, accountable, and in line with the provisions of the agreement as well as the principles of the World Trade Organization (WTO). Indonesia is also open to continued dialogue in resolving various implementation issues faced by businesses in both countries,” Minister Budi Santoso added.
For his part, Minister Thani conveyed his plan to bring a UAE business delegation to Indonesia in the near future. He expressed hope that the visit would encourage direct meetings between business actors from both countries and identify opportunities for cooperation and trade that could be developed more optimally through the utilisation of IUAE-CEPA.
“We are committed to continuing to encourage more optimal utilisation of IUAE-CEPA. To that end, we plan to bring a UAE business delegation to Indonesia and meet with Indonesian business actors. We hope this effort can identify various cooperation opportunities that can be developed through this agreement,” said Minister Thani.
From January to June 2026, total trade between Indonesia and the UAE was recorded at USD 3.14 billion, with Indonesian exports amounting to USD 1.76 billion and imports at USD 1.38 billion.
Meanwhile, in 2025, total trade between the two countries reached USD 6.42 billion. Indonesia’s exports to the UAE stood at USD 4.02 billion and Indonesia’s imports from the UAE at USD 2.39 billion, giving Indonesia a surplus of USD 1.63 billion against the UAE.
Indonesia’s main export products to the UAE include jewellery, animal or vegetable fats and oils, vehicles and parts thereof, electrical machinery and equipment, and iron and steel. Meanwhile, Indonesia’s main imports from the UAE include jewellery; salt, sulphur, and lime; aluminium; arms and ammunition; and plastics and articles thereof.