Iran expects its annual trade with Indonesia to increase significantly with the implementation of a Preferential Trade Agreement (PTA) that was finalized last week with an official announcement of the Iranian Presidency.

According to The Iran Project, Yadollah Tahernejad, who leads a joint Iranian-Indonesian trade committee in Tehran, said on Tuesday that a PTA that came into force on October 13 would lead to a major jump in trade between the two countries.

Tahernejad said Iranian administrative bodies are waiting for an official announcement of the country’s ministry of trade to start implementing the agreement.

He said the implementation of the PTA with Indonesia would allow Iran to significantly increase its exports of steel, petrochemicals and asphalt to Indonesia by reducing tariffs on export shipments.

“Indonesia has a population of 290 million people and a $20-billion trade target is well within our reach,” said the former Iranian parliament lawmaker.

Iran and Indonesia finalized their discussions on a PTA during former Iranian President Ebrahim Raeisi’s visit to Jakarta in May last year.

Iran’s new president Masoud Pezeshkian officially approved the agreement after it was endorsed by the Iranian parliament last week, paving the way for its implementation by the country’s customs office.

Tahernejad said trade with Indonesia has many advantages for Iranian businesses compared to exchanges with other countries, adding that good political relations and cultural and religious commonalities that the countries share make trade between them more attractive.

He said Iranian authorities are working to streamline banking operations and to improve transportation arrangements to facilitate trade between Iran and Indonesia, adding that a direct flight route between Tehran and Jakarta are also on the agenda to further help Iranian businesses with their activities in the East Asian country.