Jakarta, IO – Before departing for his country, Iranian President Ebrahim Raisi took the time to meet with Indonesian businessmen who are members of the Indonesian Chamber of Commerce and Industry (KADIN). The meeting with the business people – and other national stakeholders – merits mention because it carries the potential to boost growth in trade, culture and other relations between the two countries.
As reported by the media, the value of the non-oil and gas trade between Indonesia and Iran from January to March 2023 reached USD 47.9 million. Meanwhile, in 2022, the trade reached USD 257.2 million, comprising the oil and gas trade of USD 2.5 million and the non-oil and gas trade of USD 254.7 million.
The meeting at a hotel near Tugu Selamat Datang, Jakarta, revealed certain intriguing issues. The writer happened to attend it as a participant invited by the Iranian Embassy; thus, he had an opportunity to hear it firsthand. An Indonesian businessman in the maritime sector, shipping in particular, stated that the shipping of Indonesian goods (exports) to the Islamic Republic was constrained by a ban on ships entering Iranian ports. The writer found this amazing and would like to share some notes addressing the businessman’s statement. He believed the public deserves to learn about the issues thoroughly through his notes.
The ban on ships, let alone on Indonesian ships, entering Iranian ports is actually misconceived. The fact is that Indonesian ships rarely sail there. These is not my opinion, but rather something I learned from a colleague in the shipping agent business.
He divulged that trade between Indonesia and Iran has been run indirectly, meaning that goods or commodities are transported using third-party transporters and then unloaded at third-party ports in a neighboring region, before they are sent onward to their final destination in Indonesia. It is also known as transshipment, and Indonesia uses it for many its exports and imports.
Interestingly, this colleague also mentioned that Indonesia does not buy fuel from Iran, even though the Islamic Republic is a major player in the world’s oil business. Instead, Indonesia purchases petroleum products from other countries, including Russia.
He is acquainted with this arrangement as well, since his company has repeatedly proposed to the agents of Pertamina, the national oil company, to use Iranian tankers to import fuels if the company decides to purchase fuel from Iran. However, there has been no response.
Let us return to the issue of banning ships from entering Iran. Even if this happens to be the case, the policy will not be one enforced by the Iranian Government. A while ago, Iran did seize the Advantage Sweet tanker, which was navigating the Gulf of Oman from Kuwait, on its way to Houston, Texas.