Trade Pact, Gold, Palm Oil: Indonesia Aims $4.2 Billion Export to UAE

Major palm oil supplier and jewelry maker Indonesia is keeping its fingers crossed that its overall exports to the United Arab Emirates can skyrocket to around $4.2 billion by 2030.

Senior minister Airlangga Hartarto said Thursday evening that Indonesia would take advantage of its tariff-eliminating pact with the UAE to make its products more attractive in the Emirati market. The Indonesia-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force in September 2023. When asked which products Jakarta would like to sell more of to reach the $4.2 billion export target, Airlangga named “palm oil and gold”.

“The UAE has been one of the main markets for Indonesian palm oil. This is one of our most important export commodities,” Airlangga said at a dinner reception.

UAE Ambassador Abdulla Salem Al Dhaheri announced at the same event that both countries would mark five decades of diplomatic ties in 2026. On the export-import front, the diplomat said that the growing economic cooperation reflected “the strength of bilateral relations”.

The CEPA scraps tariffs on Indonesian gold jewelry and palm oil, according to media reports quoting Jakarta’s embassy in Abu Dhabi. Indonesia’s first-ever UAE-bound shipment under the trade accord comprised $6.98 million worth of gold jewelry.

Indonesia has been working on a system that would let its exporters get the lowest tariff possible. This system will automatically roll out preferential certificates of origin — a document that verifies whether a shipment is eligible for the duty exemptions and reductions. Trade Minister Budi Santoso recently revealed that Jakarta had tried out this new arrangement with goods entering the Emirati soil, but plans are underway to expand it to other free trade agreements.

Government data showed Indonesia-UAE trade went up 20 percent year-on-year to $4.5 billion in January-September 2025. Indonesia’s nine-month exports amounted to $2.9 billion, indicating a $1.3 billion surplus for Southeast Asia’s biggest economy.

Total bilateral trade stood at almost $5.1 billion in 2024, of which nearly $3.1 billion came from Indonesian exports. Products under the jewelry/gems trade code made up the lion’s share of Indonesia’s exports at $663.9 million. Followed by animal fat/vegetable oil at $429.6 million — a product category that includes palm oil.

Jakarta’s wish for greater jewelry export to Abu Dhabi comes amidst the government’s wish to impose an export tax of between 7.5 and 15 percent on gold starting next year. However, Indonesia will exempt gold jewelry from this duty as the country wants to encourage the production of high-value goods.

Tags: exports, Indonesia, palm oil, United Arab Emirates, gold jewelry