Indonesia gold jewellery exports to UAE expected to hit $286.98m

Mariecar Jara-Puyod, Senior Reporter

Indonesia gold jewellery exports to the UAE is expected to hit $286.98 million (Dhs1.1 billion/4.6 trillion Rupiah), which may further increase, alongside all other products and services from the G20 member-state and Southeast Asia’s largest economy, as a result of the United Arab Emirates-Republic of Indonesia Comprehensive Economic Partnership Agreement (CEPA), signed on July 1, 2022.

CEPA is the relaxation of trade restrictions, combined with investments provisions, between two governments, in accordance to international laws.

Ambassador Husin Bagis expressed much optimism, since prior to this development, the UAE, as of 2022, ranked fourth among the five main Indonesian jewellery importers in the world at $364 million (Dhs1.3 billion/5.7 trillion Rupiah), next to Switzerland, Singapore and Jordan. The USA at $330 million (Dhs1.2 billion/5.2 trillion Rupiah) was the fifth.

Bagis urged his enterprising countrymen to actively take part in the realisation of the CEPA, following the virtual signing of the “Indonesian Gold Jewellery Export Contract to the UAE” by officials of the gold jewellery producers PT Untung Bersama Sejahtera (headquartered in Surabaya), PT Hartono Wira (Surabaya), and PT King Halim (East Java), with UAE buyers Thangam Jewel LLC, Zumurada Jewellers LLC, and Bafleh Jewellery LLC on October 19.

The virtual signing agreement took place on the margins of the second day of the five-day “38th Trade Expo Indonesia Convention Exhibition” in Tangerang City, Java which concludes on October 22.

It was simultaneously held at the Indonesian Trade Promotion Centre in Dubai (ITPC-Dubai). Bagis, Consul General to Dubai and the Northern Emirates Candra Negara and ITPC-Dubai head Muhammad Khomaini, witnessed.

Ministry of Trade-National Export Development director general Didi Sumedi expressed his appreciation for the hard work and synergy carried out by the One Indonesia Country Team in the UAE; particularly, in maximising the use of the Indonesia-UAE CEPA to encourage more Indonesian products to enter the UAE market and also the markets of other Gulf countries.

Bagis expressed gratefulness to God and said: “Within 49 days of implementing the Indonesia-UAE CEPA, Indonesia’s export value of gold jewellery to the UAE could reach $286 million. The implementation of the Indonesia-UAE CEPA has made bilateral relations between the two countries even closer and more intense, especially in terms of trade and investment.”

“Therefore, the coming years are a momentum that should not be missed by business actors and stakeholders in Indonesia, to be able to implement strategic partnership projects. God willing and hopefully, with the support of various parties, the target of $10 billion (Dhs36.7 billion/159 trillion Rupiah) export can be achieved in three years,” he also stated. The new pact is on top of the September 8, 2023 $6.98 million (Dhs26 million/111 billion Rupiah)-worth of Indonesian gold jewellery exports, within the Indonesia-UAE CEPA framework.

According to Khomaini, Indonesia ranks seventh among the top jewellery suppliers to the UAE after India, Turkey, Italy, France, Singapore and Malaysia: “With the implementation of the Indonesia-UAE CEPA on September 1, 2023 and more open access to the UAE market, Indonesian traders must be able to take advantage to boost exports so that the position of Indonesian products against their competitors becomes more competitive.”

Indonesia was the third country to secure the new CEPA with the UAE after India and Israel in February and May 2022, respectively. The country, with its gross domestic product valued at $1 trillion (Dhs3.7 trillion/16 trillion Rupiah), was the first Southeast Asian economy to do so.

The CEPA signing took place in the presence of His Highness Sheikh Muhammad Bin Zayed Al Nahyan, UAE President and Ruler of Abu Dhabi and Indonesian President Joko Widodo at the Al Shati Palace in Abu Dhabi. Signatories were UAE Economic Minister Abdullah Bin Touq Al Marri and Indonesian Trade Minister Zulkifli Hassan.

Key areas of the CEPA include agriculture, food production, logistics and advanced technologies.

From the UAE Ministry of Foreign Affairs and International Cooperation website, Al Marri said: “The agreement will enhance access to markets, drive foreign direct investment inflows and generate opportunities across several vital sectors including energy, advanced technology, healthcare, environmental conservation and e-commerce, and shall also incubate the new generation of companies in the two countries.”

According to the Antara Indonesian State news agency and quoting Hassan, prior to the CEPA signing, the UAE was the 19th export destination country and the 18th import destination country of Indonesia with total bilateral trade for the entire 2022 at $5.06 billion (Dhs18.5 billion/80 trillion Rupiah).

From the October 10 Diplomatic Reception hosted by Consul General Negara at the Consulate General of Indonesia in Dubai to commemorate the nation’s 78th Independence Day from The Netherlands and the 20th anniversary of the inauguration of the consular mission, he quoted Ambassador Bagis as saying the CEPA would double the 2022 bilateral trade between the two countries within five years.