Indonesia Eyes $4.2 Billion in Exports to UAE Following CEPA Gains
ABU DHABI – Trade between Indonesia and the United Arab Emirates is surging following the implementation of the Comprehensive Economic Partnership Agreement (CEPA), with Jakarta targeting $4.2 billion in exports to the UAE this year. recent data indicates a 20 percent year-on-year increase in bilateral trade, reaching $4.5 billion between January and September 2025.
The CEPA, which eliminates tariffs on key Indonesian exports like gold jewelry and palm oil, has already spurred significant activity. Indonesia’s inaugural shipment under the agreement consisted of $6.98 million worth of gold jewelry. Total bilateral trade in 2024 reached nearly $5.1 billion, with Indonesian exports accounting for $3.1 billion. Jewelry/gems led Indonesian exports at $663.9 million, followed by animal fat/vegetable oil – including palm oil – at $429.6 million.
To further streamline trade, indonesia is implementing a system to automatically issue preferential certificates of origin, ensuring exporters benefit from the CEPA’s duty exemptions and reductions. Trade Minister budi Santoso confirmed the system has been tested for goods entering the UAE and will be expanded to other free trade agreements.
Despite plans to introduce a 7.5 to 15 percent export tax on gold next year, indonesia will exempt gold jewelry to incentivize the production of high-value goods and bolster exports to markets like Abu Dhabi. The country currently enjoys a $1.3 billion trade surplus with the UAE, positioning Southeast asia’s largest economy for continued growth in the region.
