Indonesia Signs World's First Supply Chain Agreement In The Indo-Pacific Region

Coordinating Minister for the Economy Airlangga Hartarto in IPEF (Photo: between)

JAKARTA - Indonesia and countries that are members of the Indo-Pacific Economic Framework (IPEF) want a strong supply chain that is strong and competitive in the Indo-Pacific region and agree to create the world's first supply chain (supply Chain Agreement).

As a form of Indonesia's commitment to help strengthen supply chains in the region, Coordinating Minister for Economic Affairs Airlangga Hartarto and minister of economy from 13 partner countries IPEF signed a supply chain agreement at the third Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM) in San Francisco, Tuesday 14 November.

Meanwhile, the supply chain agreement whose negotiations began in December 2022 in Brisbane, Australia aims to establish a structure that allows parties to develop a more in-depth mutual understanding of regional supply chains.

In addition, it can increase the crisis response ability to supply chain disruptions, share information and the best practices regarding supply chain opportunities and vulnerabilities, facilitate business actors and investors to strengthen supply chain.

Furthermore, encouraging supply chain resilience in important sectors and main goods, as well as encouraging labor rights and labor development among IPEF partner countries.

After the signing of the supply chain agreement, the Government will carry out the domestic process needed to enforce the IPEF supply chain agreement and coordinate with parties regarding the implementation of the supply chain agreement.

Meanwhile, each IPEF member country will provide representatives of senior officials to each tripartite body (representatives of the Government, workers, and employers), as is well known, the supply chain agreement mandates the formation of three supply chains, namely the IPEF supply chain board (IPEF supply chain union),

Then, the IPEF supply chain crisis crisis network, and the IPEF labor rights advisory board (IPEF sports rights advisory board).

On the occasion, regarding Pillar III IPEF, the clean economy, the United States said that there were several tangible benefits related to Pilar III, including the IPEF Catalytic Capital Fund worth 30 million US dollars, the US DSC Global Climate Fund worth 700 million US dollars, and the IPEF Investor Forum which will be held in Singapore in April or June 2024.