Susiwijono's Economic Sesemonko Reveals IEU-CEPA Boosts Indonesian Exports To Europe

JAKARTA - Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso revealed that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) agreement could boost Indonesia's exports to Europe by more than 50 percent.

"If that later applies, the impact will be enormous, even the Coordinating Minister for the Economy yesterday guaranteed that the increase could be more than 50 percent of our exports to Europe," he said as quoted by ANTARA, Wednesday, December 3.

According to him, there are more than 98 percent of Indonesian products exported to Europe which will only be subject to a zero percent tariff, such as clothing products and accessories (aparels) which were previously charged a rate of 7-15 percent in Europe and then to zero percent.

Another example is that Indonesian agro products such as bananas exported to Europe were previously charged up to 16 percent with the IEU-CEPA being zero percent.

The Coordinating Ministry for Economic Affairs stated that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is the capital to realize the Indonesian economy growing eight percent in 2029.

Deputy for Coordination of BUMN Business Management and Development at the Coordinating Ministry for the Economy Ferry Irawan said the agreement opened wider market access for Indonesian products in the European Union region, which also provided a number of benefits, such as lower rates for most Indonesian tariff posts to Europe.

Then the agreement is also useful in increasing the value of the national economy, as well as facilitating the visa process through fast-track policies.

Through the agreement, he continued, several Indonesian export commodities will enjoy a 0 percent tariff, ranging from agricultural and plantation products such as oil palm, coffee, cocoa, and rubber, fishery products such as fish, lobsters, and shrimp, forestry commodities such as wood, processed wood, and wood panels, to textile and electronic products.

In addition to utilizing the IEU-CEPA agreement as capital for economic promotion, he said, the government helped strengthen the national economy by encouraging productivity, implementing a blue and green economy, making urban areas a center of growth, and spurring investment.

Furthermore, strengthening industrialization, strengthening tourism and the creative economy, accelerating digital transformation, and maximizing state spending for productivity.