Jakarta, Jul 31 (IANS): Indonesia and the Gulf Cooperation Council (GCC) initiated negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry here on Wednesday.

The event was highlighted by the signing of a joint statement by Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi.

"Through the I-GCC FTA, Indonesia aims to strengthen trade relations while opening up mutually beneficial investment opportunities," the Indonesian trade minister said in his speech, Xinhua news agency reported.

He added that the FTA is expected to boost exports of Indonesian commodities, such as motor vehicles, palm oil, jewelry, coffee, textiles, and electronics.

Jasem highlighted the significant potential benefits of the I-GCC FTA for both Indonesia and the Gulf countries, covering not only trade in goods but also services, customs, trade barriers, and small and medium enterprises.

"We want this trade agreement not only to increase trade figures but also to enhance economic cooperation in other areas. We also aim to open up opportunities for collaboration in new sectors, particularly Islamic economics," he said.

The GCC is a cooperative group of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.

Last year, trade transactions between Indonesia and the GCC amounted to 15.7 billion U.S. dollars, with 6.2 billion dollars recorded from January to May this year.