Indonesia-China Strengthen Partnership in the Industrial Sector to Negotiate Upgrading ACFTA 3.0

Minister of Industry Agus Gumiwang Kartasasmita (Photo: dock. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) and the Ministry of Industry and Information Technology (MIIT) of the People's Republic of China (PRC) have signed a memorandum of understanding or Memorandum of Understanding (MoU) regarding industrial sector cooperation.

The scope of cooperation includes Automobile, Lithium Battery, Semiconductor, Bio-Prospective, Pharmacy, and Industrial Technology Development.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the signing of this cooperation reflects the initial commitment of both parties to advance the industrial sector in a mutually beneficial manner.

Both agreed to continue exploring special cooperation in the field of Advanced Industry Cooperation in the cooperation that will be signed by the two ministers.

"Facing the big challenges ahead, I believe collaboration is key, and I hope this discussion can improve and strengthen relations between the two countries, especially in manufacturing sector cooperation," said Minister of Industry Agus in a written statement received by VOI, Tuesday, December 5.

Minister of Industry Agus said that the growth of the non-oil and gas industry in the third quarter of 2023 was 5.20 percent. This achievement shows the government's ability to maintain industrial conditions so that they continue to grow positively amidst economic turmoil and challenges, both external and internal.

Meanwhile, at the ASEAN-China Summit which took place last November in Cambodia, negotiations on Upgrading ASEAN-China Free Trade Area (ACFTA) 3.0 were agreed and launched. The forum agreed that Upgrading ASEAN-China Free Trade Area (ACFTA) 3.0 will ensure inclusiveness, modernity, comprehensiveness and mutual benefit for both parties.

The parties also agreed that upgrading negotiations would target a more meaningful and better level of tariff liberalization. Currently, in the ACFTA scheme there are still several superior Indonesian products which are included in the sensitive tracks category in China, including paper products.

Furthermore, at the China-ASEAN Forum on Emerging Industries which will be held on July 4-5, 2023 in Shenzhen, China, the Chinese MIIT Minister invited ASEAN member countries and China to jointly explore the establishment of an ASEAN-China Ministerial dialogue mechanism in the industrial sector.

"They also agreed to hold regular forums to strengthen policy coordination," he said.

Meanwhile, the Director General of Resilience, Regional and International Industrial Access (KPAII) of the Ministry of Industry, Eko S. A. Cahyanto, said that the main industrial products exported by Indonesia to China in 2022 are ferro-nickel, palm oil and its fractions, nickel mate, stainless steel semi-finished goods, and nickel oxide sinter.

Meanwhile, in the same period, Indonesia's main imported industrial products from China included telephone equipment, portable digital automatic data processing machines, shovel machines, excavators, smartphones for wireless networks, and prefabricated buildings.

Indonesia welcomes the offer made, especially to strengthen cooperation in the industrial sector.

"I hope that Indonesia and China can work together to support the initiation of the ASEAN-China Ministerial Meeting on Industry," he said.