Zulkifli Hasan: Indonesia-Korea 'Trade Highway' Officially Opened with IK-CEPA

JAKARTADAILY.ID – The Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA) was officially implemented Sunday, January 1, 2023.

Indonesian Minister of Trade Zulkifli Hasan stated that he is proud that this agreement can be implemented so that the "trade highway" between Indonesia and South Korea can be further expanded.

The implementation of the IK-CEPA is also the right momentum for the two countries to strengthen economic relations, in particular, trade and investment.

Also Read: Indonesian Halal Product Assurance Organizing Agency: Mixue Do Not Have Halal Certificates Yet

This implementation also marks the 50th anniversary of diplomatic relations between the two countries which reflects the close "special strategic partnership" relationship that has been owned by the two countries since 2017.

"With the implementation of IK-CEPA on January 1, 2023, businesses can take advantage of the comprehensive coverage of IK-CEPA. For example, eliminating tariffs on import duties on trade in goods, increasing opportunities for trade in services, increasing investment opportunities, as well as increasing economic cooperation and human resource development programs," said Zulkifli Hasan in a press statement on Tuesday, January 3, 2023.

Zulkifli explained the coverage of IK-CEPA will provide various benefits for Indonesia. First, the more open access for exports of Indonesian goods to South Korea.

Also Read: Zulkifli Hasan Optimistic Indonesia's Trade in 2023 Will Grow Positively 

Through IK-CEPA, South Korea provides convenience in terms of import duty rates in the form of eliminating 11,267 tariff items or 95.5 percent of the total tariff headings to 0 percent.

Several Indonesian products whose market access will be increasingly open include bicycles, motorbikes, motor vehicle accessories, processed fish products, salak fruit, and textile products such as socks.

Second, the more open trade in services from Indonesia to South Korea. Through IK-CEPA, the two countries opened more than 100 service sub-sectors with foreign investment ranging from 49 percent to 100 percent. In addition, IK-CEPA will facilitate the movement of intra-corporate transferees, business visitors, and independent professionals. Third, the opportunity to increase long-term investment. IK-CEPA will encourage South Korean investment to enter Indonesia.

Also Read: BMM Exhibits Featured Programs at Indonesia Giving Fest Exhibition

South Korea has so far shown its seriousness to invest in Indonesia, particularly in the automotive, metal, chemical, and renewable energy sectors. Fourth, there are opportunities for economic cooperation and human resource (HR) development.

Through IK-CEPA, Indonesia gets economic cooperation programs that bring the capacity of Indonesian human resources to become more skilled, skilled, and in line with industry needs.