Launches Trade Agreement With United Arab Emirates, Trade Minister Lutfi Optimistic To Complete In 2022

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - The Ministry of Trade officially launched the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) negotiations.

The two countries agreed to complete the agreement in less than a year. The Indonesian government will maximize the momentum of trade transformation to maximize export potential.

The Minister of Trade of the Republic of Indonesia Muhammad Lutfi said he was optimistic that the exploration of a trade by the two parties would not encounter many obstacles. Not only that, but Lutfi also compared the CEPA assessment with the UAE that it would be much quicker to reach an agreement, compared to Australia or South Korea, which took 11 years.

"We will finish this (IUAE-CEPA) before one year is over, and I have already told the negotiators", he said at the IUAE-CEPA joint press conference, Thursday, September 2.

The negotiations were officially launched on September 2, which is targeted for completion by 2022. Lutfi noted that this trade agreement will be aimed at supporting the post-COVID-19 economy; improve the competitiveness of national industries and market access for goods, services, and Indonesian labor to the UAE.

Including, said Lutfi, to optimize the position of the UAE as a trade hub for the benefit of Indonesia's development.

"UAE is the center and entrance to the investment source area, as well as an important partner in Indonesia's development cooperation", he said.

Lutfi said he had also identified several very competitive goods to increase exports when the agreement was reached. Among them are gold jewelry commodities, basic metals to automotive cars.

Furthermore, Lutfi said for metal commodities, the government will seek to explore collaborative cooperation with existing metal industries in the United Arab Emirates such as aluminum and alumina.

Meanwhile, Lutfi is also very ambitious to penetrate the automotive market in the UAE and its surroundings with domestic industries.

"Now there are signs that our automotive can enter the UAE, hopefully in the future, our automotive and cars can dominate the market there. Indonesia is now evolving from a country that sells raw and semi-finished goods to a country that sells high-tech industrial goods", he said.