IK-CEPA Presents New Opportunities for Economic Growth, Trade and Investment Between Indonesia and South Korea

- 23 June 2022 09:06 WIB
Deputy Minister of Trade Jerry Sambuaga. (Photo/Screenshot Instagram @jerry.sambuaga)
Deputy Minister of Trade Jerry Sambuaga. (Photo/Screenshot Instagram @jerry.sambuaga)

JAKARTADAILY.ID – The Indonesia - South Korea Comprehensive Economic Partnership Agreement (IK-CEPA) presents new opportunities for economic growth, trade, and investment between Indonesia and South Korea.

“Because of IK-CEPA, as many as 11 thousand of our products are entering South Korea free or zero tariff. This is an extraordinary achievement and concrete benefits obtained from IK-CEPA," Indonesian Deputy Miniter of Trade Jerry Sambuaga said in a press release on Wednesday, June 22, 2022.

Jerry explained that several commitments in the IK-CEPA, including in terms of market access for goods, Indonesia will eliminate 92 percent of tariff posts, while South Korea will eliminate 95.5 percent of tariff posts.

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Additionally, in the investment sector, the commitment of the two countries will open up opportunities to increase South Korean investment in Indonesia which can have a positive impact on employment.

Meanwhile, Indonesia and South Korea are also committed to cooperation in various fields, including industry; agriculture, fisheries, and forestry; trading rules and procedures; infrastructure; technology and innovation; culture and creative fields; and micro, small and medium enterprises (MSMEs).

IK-CEPA will provide many benefits, such as improving Indonesia's macroeconomic performance, market access and exports of Indonesian goods and services, creating a conducive business climate, and providing certainty and uniformity of trade rules, and employment.

IK-CEPA will also improve the quality of human resources (HR) Indonesia with technical assistance and knowledge transfer from South Korea, as well as increasing the role and opportunities of MSMEs," said Jerry.

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Jerry said that after being signed by the two countries on December 18, 2020, the IK-CEPA is important to be implemented immediately. Meanwhile, South Korea itself has completed its ratification process in June 2021.

According to Jerry, currently, IK-CEPA is entering the final stage of the ratification or ratification process. The government has held a series of meetings and FGDs both with relevant stakeholders, as well as with Commission VI DPR RI to discuss the ratification of the IK-CEPA.

"We really hope for support and cooperation from Commission VI of the Indonesian House of representative to accelerate the completion of the ratification of the IK-CEPA, so that the agreement can be implemented according to the targets that have been set and utilized by all levels of society, especially MSMEs," he concluded.

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Editor: Suksmajati Kumara


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