Kompas - 11 Januari 2022
Minister of Trade: RI implements RCEP in mid 2022
By Hendriyono Widi
Because the ratification procedure had not yet been finished, Indonesia fell behind other nations in implementing the RCEP earlier this year. The ratification is expected to be completed in the first quarter of 2022, and the RCEP will be implemented in mid-2022, according to Indonesian Minister of Trade.
The Regional Comprehensive Economic Partnership Agreement, or RCEP, will not be implemented in Indonesia until mid-January 2022. This is due to the fact that the ratification procedure in the House of Representatives is still ongoing.
Indonesia is committed to accelerating the RCEP agreement’s ratification procedure at the national level. This ratification is expected to be completed in the first quarter of 2022, with implementation beginning in mid-2020.
This was expressed by Minister of Trade Muhammad Lutfi during a bilateral meeting with Japanese Minister of Economy, Trade and Industry (METI) Koichi Hagiuda on Monday (10/1/2022) at the Ministry of Trade office in Jakarta. The two ministers also reviewed a variety of G-20 key topics, particularly trade, industry, and investment, in order to accelerate the Sustainable Development Goals (SDGs).
As the initiator and Chair of the RCEP Negotiations, Lutfi stated that Indonesia is dedicated to expediting the RCEP ratification process at the national level. This ratification is expected to be completed in the first quarter of 2022, with implementation beginning in mid-2020.
"Due to the impact of the Covid-19 epidemic, the adoption of RCEP is likely to support regional and global economic recovery efforts," Lutfi stated in a press statement issued in Jakarta on Monday (10/1/2022) night.
The RCEP was supposed to go into effect on January 1, 2022, for the fifteen nations who signed it on November 15, 2020. The ten ASEAN members (Indonesia, Malaysia, Brunei Darussalam, Cambodia, Laos, Myanmar, Philippines, Singapore, Thailand, and Vietnam), as well as China, Japan, South Korea, Australia, and New Zealand, make up this group.
Because each country’s ratification process is different, only 11 countries have implemented it as of January 1, 2022. After obtaining ratification, South Korea will join on February 1, 2022. Only Indonesia, Malaysia, and the Philippines have yet to complete the ratification process.
Indonesian exports are expected to expand by 8-11 percent in the five years after the RCEP was established, while foreign investment will increase by 22 percent, according to the Ministry of Trade. In addition to lowering tariffs and facilitating investment, the RCEP provides chances for Indonesia to participate more fully in global value chains.
RCEP will enhance gross domestic product (GDP) by 0.07 percent in 2040, according to Coordinating Minister for the Economy Airlangga Hartarto. Indonesia’s GDP will be adjusted by 0.08 percent if the RCEP is not implemented.
According to government research, Indonesia’s trade balance will be negative in the early years of the RCEP’s implementation. However, this deficit will be offset by a surplus of 979.03 million US dollars in 2040, which will be 2.5 times bigger than the surplus in 2040 if the RCEP is not implemented, which was just 383.06 million US dollars (Kompas, January 3, 2022).