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- Iran’s President Raisi visits Indonesia, signs 11 cooperation agreements
Iran’s President Raisi visits Indonesia, signs 11 cooperation agreements
Iran is seeking new trade connections as its economy has been battered by Western sanctions
![Indonesian President Joko Widodo (R) and his Iranian counterpart Ebrahim Raisi gesturing to photographers at the Presidential Palace in Bogor, Indonesia.](https://cdn.i24news.tv/uploads/ac/5e/74/e1/39/f0/d8/85/98/92/c4/fb/c3/9d/19/f1/ac5e74e139f0d8859892c4fbc39d19f1.jpg?width=1000)
Iran’s President Ebrahim Raisi made a two-day visit to Indonesia, where he signed 11 memorandums of understanding (MoUs) and other cooperation documents to boost relations between the two countries.
The meeting with Raisi's Indonesian counterpart Joko Widodo was focused on economic ties between the two Muslim nations. On Tuesday, Indonesia and Iran signed a preferential trade agreement.
"We hope that it will increase trade between Indonesia and Iran," Widodo said after a signing ceremony. For his part, Raisi added that the exchanges would be carried out using their local currencies, putting an end to their use of the dollar.
For Indonesia, the exchange is an opportunity to boost economic activity, still sluggish from the Covid pandemic. Iran, on the other hand, is seeking new trade connections. Its economy has been battered by Western sanctions.
“We believe that sanctions and threats cannot stop us from developing. Partnering with neighboring countries, Islamic nations, and states that share our values is our priority," said Raisi.
The world’s most populous Muslim nation, Indonesia is predominantly Sunni, unlike Shiite Iran. It is a large and potentially fruitful market for Iranian goods.
“As a result of this visit there will be significant steps taken in the development of bilateral relations. We have set goals for development of trade and economic ties between the two countries from the current levels to the tune of $20 billion,” Raisi pledged.
Under the agreement, Jakarta will get greater access to products like processed food and pharmaceuticals, textiles, palm oil, coffee and tea. In exchange, Indonesia will most notably lower tariffs for Iran's oil and chemical products.
This is Raisi's 12th diplomatic mission abroad since taking office in August 2021, and there are likely to be more. As sanctions keep biting, Tehran will continue seeking economic allies.