Economy, Domestic Economy

High-Level Indonesian Delegation Due in Tehran

High-Level Indonesian Delegation Due in TehranHigh-Level Indonesian Delegation Due in Tehran

A 27-strong trade delegation from Indonesia is due to visit Tehran today to hold talks with top Iranian officials and explore avenues of cooperation in energy, electricity and petrochemical sectors, announced Iran’s Ambassador in Jakarta Valiollah Mohammadi on Tuesday.

The delegation includes the country’s Foreign Minister Retno Marsudi, Minister of Energy and Mineral Resources Sudirman Said and Indonesian President’s special envoy to the Middle East, Alwi Shihab.

According to Mohammadi, the Indonesian officials are scheduled to meet with President Hassan Rouhani, Foreign Minister Mohammad Javad Zarif, Energy Minister Hamid Chitchian and Oil Minister Bijan Namdar Zanganeh during their two-day visit, IRNA reported.

Mohammadi referred to President Hassan Rouhani’s visit to Jakarta in April to attend the 60th anniversary of the Asian-African Conference, during which he met with his Indonesian counterpart, Joko Widodo, as a “key step in improving Tehran-Jakarta ties”.

The Indonesian energy minister also said on Tuesday that even though economic sanctions imposed on Iran over its nuclear energy program have not yet been lifted, Indonesia is striking cooperation deals with Iran.

“Many countries are racing to enter Iran and we must not be left behind,” said Sudirman Said.  

“Indonesia is in dire need of bitumen and gas, and Iranians have expressed interest in meeting the country’s bitumen demand and cooperating in Indonesia’ electricity sector during previous discussions.”

Sudirman, accompanied by Indonesian Economy Minister Sofyan Djalil, had previously visited Tehran in May and attended the 11th Iran-Indonesia Economic Cooperation Commission, during which the two sides signed a memorandum of agreement regarding cooperation in oil and energy sectors.

Based on the agreement, Iran pledged to establish small-scale oil refineries with a maximum production capacity of 300,000 barrels per day in Indonesia. The project requires about $3 billion of investment, 70% of which will be supplied by the Indonesians and the rest by Iran.

Iran also agreed to build 48 small-scale hydroelectric power plants in the Southeast Asian country over the next five years.

Trade between Iran and Indonesia stood at $430 million in 2014. Before the intensification of economic sanctions on Iran in 2012, it amounted to $2 billion.