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Trade Minister discusses RCEP bill, IK-CEPA with House

Antara News - 06 July 2022

Trade Minister discusses RCEP bill, IK-CEPA with House

Trade Minister Zulkifli Hasan discussed the bill of the Ratification of the Regional Comprehensive Economic Partnership (RCEP) and the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) with the House of Representatives (DPR RI).

"The approvals of RCEP and IK-CEPA will provide benefits for the Indonesian economy, especially for export performance," Hasan stated here on Wednesday.

According to the trade minister, one of the benefits of the two agreements is increasing opportunities to market access.

RCEP members account for 30 percent of the global gross domestic product (GDP) and 28 percent of the global trade, Hasan pointed out.

Meanwhile, the minister noted that the IK-CEPA gives a "top-up" for the commitment to opening market access for goods and services of Indonesia and South Korea in the ASEAN-Korea Free Trade Area.

IK-CEPA also has a scope of economic cooperation that can be aligned with Indonesia’s national interests, he added.

At the discussion, most members of the House’s faction expressed support for both RCEP and IK-CEPA to be discussed at the plenary meeting.

In addition, Hasan noted that the approval of RCEP is expected to accelerate economic recovery and address global economic uncertainty in the Asia-Pacific region.

Regarding the IK-CEPA, the House’s representatives affirmed that removing tariff and non-tariff barriers cannot eliminate the provisions for halal certification on imported products from South Korea, especially food and beverage items.

The government is also expected to continue to boost the competitiveness and the added value of Indonesian products, so that Indonesia can encourage the exports of high-value products to South Korea.

South Korea has a high demand for wood paneling, garment, pulp, basic chemicals, and seaweed products, and the national business actors should benefit from it.

Hasan also remarked that the Indonesia-United Arab Emirates CEPA (IUEA-CEPA) agreement was signed on July 1.

"We are optimistic that the process for ratifying the agreements would be completed within the next two or three months, so the benefits can be felt immediately. I remind again that this requires the cooperation of all stakeholders," he emphasized.

 source: Antara News