Indonesia and Ireland Strengthen Economic Ties with New Agreements

Jakarta (ANTARA) - Indonesia and Ireland are taking significant steps to strengthen their economic relationship through the signing of a Letter of Intent (LoI) aimed at enhancing bilateral trade and investment. This agreement, signed in Jakarta, is seen as a foundation for future collaboration across various sectors, including digital technology, artificial intelligence (AI), renewable energy, and aviation.

Deputy for Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, emphasized that the LoI is crucial for translating shared priorities into concrete cooperation between the two nations. He noted that Indonesia and Ireland have maintained diplomatic relations for 42 years, during which their partnership has evolved significantly in trade, investment, and cultural exchanges.

“We hope to finalize this agreement soon, as it will serve as a key instrument to streamline our economic relations.”Edi Prio Pambudi, Deputy for Economic Cooperation and Investment

According to Edi, the total trade value between Indonesia and Ireland reached approximately $228.6 million in 2025, with $145.5 million recorded from January to July 2026, indicating a positive trend. He highlighted the potential for further collaboration in sectors where both countries can leverage their strengths. He mentioned that Ireland has long been recognized as a leading digital technology hub in Europe, hosting major global tech firms. Meanwhile, Indonesia offers a large and growing market with robust industrial capacity.

In addition to the LoI, discussions are underway to finalize a Double Taxation Agreement (DTA) with Ireland. Edi pointed out that Indonesia currently lacks a DTA with Ireland, which is viewed as essential for enhancing trade efficiency and facilitating business interests between the two countries. He expressed hope that the agreement could be finalized soon, as it would serve as a key instrument to streamline economic relations.

Sharon Lennon, the Irish Ambassador to Indonesia, expressed optimism about the potential for business cooperation, stating that Ireland is ready to bring expertise and experience to support Indonesia's economic ambitions. The signing of the LoI and the ongoing negotiations for a DTA reflect both countries' commitment to deepening their economic ties.

“Ireland is ready to bring expertise and experience to support Indonesia's economic ambitions.”Sharon Lennon, Irish Ambassador to Indonesia

As Indonesia prepares to implement the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), enhancing cooperation with Ireland is seen as a strategic move to access the broader European market. Edi highlighted that Ireland could serve as a gateway for Indonesia into Europe, thus increasing the importance of finalizing the DTA.

Overall, the agreements signify a mutual recognition of the complementary strengths between Indonesia and Ireland, with both nations looking to capitalize on their respective advantages to foster economic growth.