JAKARTA: The Gulf Cooperation Council and Indonesia are aiming to finalize their free trade agreement in 2026, trade officials said on Saturday as they wrap up the fourth round of negotiations.

Indonesia has been working to enhance trade ties with GCC members, and already has a Comprehensive Economic Partnership Agreement with the UAE, its first with a Gulf nation.

Jakarta and the GCC formally launched negotiations for a free trade agreement in July 2024, and have so far held four rounds of negotiations, the latest of which concluded on Friday in Riyadh.

“Entering the fourth round of negotiations, Indonesia and the GCC have an increasingly solid foundation for negotiations,” Djatmiko Bris Witjaksono, director-general of international trade negotiations at the Indonesian Ministry of Trade, said in a statement issued on Saturday.

“We are optimistic that the dynamics of constructive discussions and mutually beneficial solutions can be further accelerated so we can reach a substantive conclusion of the Indonesia-GCC FTA by 2026.”

Indonesia’s trade with GCC countries was valued at around $15.4 billion between January and November 2025, with its main export commodities including palm oil, coffee, jewelry and motor vehicles.

“We are hoping that the talks will conclude soon so that we can expand access of Indonesian goods and services to Gulf countries,” said Danang Prasta Danial, director of bilateral negotiations at the trade ministry and also head of Indonesia’s negotiating team.

Indonesia’s ties with the region has traditionally revolved around domestic workers, and Hajj and Umrah pilgrimages.

The FTA is projected to increase Indonesian exports by 17.4 percent, and provides a boost to electronics, leather goods, metal products, textile and the manufacturing sectors, while also expanding exports to the Middle East, Africa and Europe, the trade ministry said.

“We are optimistic that negotiations can be finalized in 2026 and would be an even stronger foundation to strengthen our bilateral relations,” said Raja Munahi Al-Marzoqi, who heads the GCC negotiating team.

“Indonesia and the GCC have the commitment and capability to conclude these negotiations through close collaboration as a team, while upholding a balance of interests and the principle of mutual benefit.”