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The Minister of Trade ensures that RCEP and IK-CEPA are effective January 1, 2022

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CNN Indonesia - 14 December 2021

The Minister of Trade ensures that RCEP and IK-CEPA are effective January 1, 2022

The Minister of Trade (Minister of Trade) Muhammad Lutfi confirmed that the Regional Comprehensive Economic Partnership (RCEP) will take effect January 1, 2022.

However, he stated that regulations or laws must first be approved as a legal canopy before it can be implemented. On Monday (13/12), he informed this to Commission VI DPR RI during a meeting.

"We hope that the RCEP Agreement will be ratified by legislation and put into effect early next year. Indonesia is the lead negotiator for the Regional Comprehensive Economic Partnership (RCEP). This agreement can be used by Indonesia as soon as possible "Lutfi was quoted by Antara on Monday (12/13) as saying.

The DPR RI’s Commission VI agreed during the meeting that the RCEP and the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) will be ratified by legislation.

Lutfi expressed optimism that the RCEP would contribute in the recovery of the Indonesian economy, increase investment and industry expansion, and boost the competitiveness of Indonesian products and micro, small, and medium businesses (MSMEs).

He also stated that he would continue to support a number of initiatives aimed at ensuring that Indonesia benefits the most from the RCEP’s implementation.

The efforts in question include deregulating and encouraging investment by simplifying business licensing through the implementation of the Job Creation Law, developing industry 4.0 to accelerate Indonesia’s digital transformation, and implementing the National Action Plan through policy changes and ministry/agency work programs.

He also stated that additional efforts were required, including increased coordination and rigorous collaboration with the federal government, state and local governments, chambers of commerce and industry, associations, Free Trade Agreement Centers, and academia.

Then, on a regular basis, educate the public, improve the FTA Center and Export Center’s roles, and optimize the roles of trade attachés and the Indonesian Trade Promotion Center.

"IK-CEPA should be viewed as a tool for correcting Indonesia’s trade imbalance with South Korea, and it should be used as much as possible by the domestic business community, including MSMEs," Lutfi added.

Furthermore, Lutfi believes that the IK-CEPA would be approved by the end of 2021 and implemented as soon as possible in early 2022.

 Fuente: CNN Indonesia