Indonesia, UAE forge stronger economic ties with growing trade and investment opportunities

Indonesia and the United Arab Emirates have deepened their economic ties, with trade volumes soaring. The two nations established diplomatic relations 50 years ago, but it was only in September 2023, following the entry into force of the Indonesia-UAE Comprehensive Economic Partnership Agreement (IUAE-CEPA), that trade truly began to accelerate. The agreement, which removed or reduced tariffs on most goods traded between the two economies, aims to boost bilateral trade to $10 billion within five years.

Indonesian exports to the UAE have increased by 75 percent over three years, reaching $4.03 billion in 2025 from $2.30 billion in 2022. Trade balance with the UAE also shifted from a $471 million deficit to a record $1.62 billion surplus. Key products in the trade include jewelry, palm oil, semi-finished steel, aluminium oxide, smartphones, electrical control panels, footwear, and seamless steel pipes.

These products, which together account for a significant portion of Indonesian exports to the UAE, have seen substantial growth due to the tariff preferences under the CEPA.

The Indonesia Trade Promotion Center (ITPC) Dubai, established in 1985, has played a crucial role in facilitating this economic partnership. As Indonesia's export promotion office in the UAE, ITPC Dubai provides market information, product promotion, business matchmaking, and exhibition facilitation services. The center's role has evolved with the partnership, focusing on market penetration, buyer conversion, and market diversification.

With an ambitious goal of making Indonesia a production partner for the UAE, beyond just a supplier, the partnership is set to expand Indonesia's role in the UAE's economy in the years to come.