Trade Minister Zulkifli Hasan expressed optimism that national exports would rocket in 2022 after the House of Representatives (DPR RI) passed two bills, the Regional Comprehensive Economic Partnership (RCEP) and CEPA between Indonesia and South Korea.
“The RCEP implementation, as the Mega Free Trade Agreement (Mega-FTA), will bring benefits to Indonesia, such as by increasing the gross domestic product (GDP) by 0.07 percent, or equivalent to Rp38.33 trillion, and foreign investment by 0.13 percent, or equivalent to Rp24.53 trillion, by 2040,” Hasan remarked here on Wednesday.
Ratification of the two bills became a legal foundation for the RCEP and IK-CEPA, Indonesia-Korea Comprehensive Economic Partnership Agreement, which were both signed in 2020.
The RCEP, which is a consolidation of the five ASEAN+1 FTAs, is expected to realize certainty and uniformity of trade regulations, thereby increasing access to the export market for goods and services.
RCEP is also aimed at strengthening the investment climate; encouraging the empowerment of export-oriented micro, small, and medium Enterprises (MSMEs); enhancing various forms of cooperation and technology transfer; and reinforcing Indonesia’s position in the regional supply chain.
Meanwhile, IK-CEPA, which is targeted to be implemented from January 2023, will be a platform for cooperation between Indonesia and South Korea to increase trade in goods, services, and investment, as well as to expand job opportunities, boost national technological capabilities and capacity, and deepen economic cooperation between the two countries.
Moreover, Hasan affirmed that ratification of the RCEP and IK-CEPA bills demonstrated Indonesia’s commitment to intensifying trade relations and economic cooperation amid the challenging global situation, especially after the COVID-19 pandemic.
Meanwhile, House member Aria Bima said that for Indonesia, all RCEP member countries are strategic trade partners with huge potential to expand Indonesia’s reach in the global value chain.
Source: Antara News