The IEU-CEPA Agreement Has Been Signed, The Minister Of Industry Explains Its Impact To RI

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Theresia Agatha/VOI)

TANGERANG - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that the settlement of Indonesia's trade negotiations with a number of countries could expand Indonesia's products in the global arena.

A few days ago, Indonesia signed a collaboration in the form of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA).

According to Agus, Indonesia's trading principle is not merely pursuing a surplus, but also increasing the volume of trade with major partners in the European Union.

"My deficit and surplus is correct, but it is no less important for my principle is to enlarge the cake from our trade with trading partner countries. That is the principle," said Agus when met by reporters at ICE BSD, Tangerang, Banten, Thursday, September 25.

In addition, Agus said, the agreement could also increase the trade balance, considering that in trade cooperation, the balance sheet is considered important in addition to surpluses and deficits.

"(IEU-CEPA) is enlarging the trade balance between us and EU (Europe), between us and China, Australia. Now with Canada, with the UAE," he said.

Meanwhile, regarding investment estimates within the framework of the IEU-CEPA, according to Agus, the agreement is more directed at expanding the Indonesian market in Europe.

"This is extraordinary (investment estimates). If the IEU-CEPA is more about expanding our market. Our target market will be bigger," he explained.

He also reiterated that the most important thing in the agreement was how the IEU-CEPA was able to open wider market access and show the competitiveness of Indonesian products which were considered higher.

"We are very positive because the competitiveness of (Indonesia) products is higher (from other countries)," explained Agus.

Previously, Indonesia and the European Union officially completed the substantial stage of the IEU-CEPA negotiations on Tuesday, September 23.

European Union Commissioner for Trade and Economic Security Maros Sefcovic said the deal would remove more than 98 percent of fares, eliminate almost all trade barriers and open up new opportunities for investment between the two sides.

According to Maros, the agreement was designed by taking into account the interests and sensitivity of each country to achieve balanced results. As an illustration, the import rate of motorized vehicles of 15 percent in Indonesia will be removed in stages over the next five years.

The policy, said Maros, is expected to open a market for the European Union's automotive industry and at the same time attract important investments, especially in the fast-growing electric vehicle sector.

"European Union exports themselves will save more than 600 million euros in import duties on goods sent to Indonesia, funds can be reinvested for innovation, expansion and job creation," Maros said at the Joint Announcement Indonesia IEU-CEPA, Tuesday, September 23.

In addition, he continued, the IEU-CEPA will also strengthen strategic cooperation in various advanced technology sectors, such as electric, pharmaceutical and electronic vehicles, all of which are important elements of future economic growth.