Beyond Economic Calculus: Shared Islamic Identity as Deal Catalyst On Indonesia-Iran Preferential Trade Agreement

Authors

  • Ilham Dary Athallah UIN Sunan Ampel, Surabaya
  • Hayara Khairia The University of Western Australia
  • Tsabita Husna Universitas Gadjah Mada, Yogyakarta

DOI:

https://doi.org/10.15642/sarpass.2025.4.2.210-230

Keywords:

Indonesia-Iran, Preferential Trade Agreement, Islamic Identity, Constructivism

Abstract

This paper examines the Indonesia-Iran Preferential Trade Agreement (II-PTA), signed in May 2023 and ratified in late 2024, as a puzzle for traditional international political economy theories. This theory asserts that a country usually signs trade agreement because of their already significant economic interdependence. But those two Muslim majority nations recorded a relatively low volume in bilateral trade. Utilizing a constructivist framework, this study argues that shared Islamic identity played a significant role in shaping the national interests of both Indonesia and Iran, and driving the agreement forward beyond purely rational economic calculations. The analysis demonstrates how this shared identity, coupled with norms of solidarity within the Ummah, provided a powerful ideational foundation that not only defined cooperation as normatively appropriate but also facilitated the negotiation process. This research foregrounding Islamic identity as a central variable for economic cooperation that deviates from conventional market logic

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Author Biographies

Hayara Khairia, The University of Western Australia

Graduate Student

Tsabita Husna, Universitas Gadjah Mada, Yogyakarta

Undergraduate Student

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Published

2025-06-30

How to Cite

Athallah, I. D., Khairia, H., & Husna, T. (2025). Beyond Economic Calculus: Shared Islamic Identity as Deal Catalyst On Indonesia-Iran Preferential Trade Agreement. The Sunan Ampel Review of Political and Social Sciences, 4(2), 210–230. https://doi.org/10.15642/sarpass.2025.4.2.210-230

Issue

Vol. 4 No. 2 (2025): June

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Articles

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Copyright (c) 2025 Ilham Dary Athallah, Hayara Khairia, Tsabita Husna

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