Deputy Chairman Of DEN Mari Pangestu: Indonesia's Economy Benefits Of Active Free Polugri Policy

Deputy Chairman of the National Economic Council (DEN) Mari Elka Pangestu. (Photo: Doc. ANTARA)

JAKARTA - Deputy Chairman of the National Economic Council (DEN) Mari Elka Pangestu stated that the Indonesian economy benefits from active-free foreign policy (polugri).

In the Mandiri Investment Forum 2025 (MIF) activity in Jakarta, Tuesday, Mari Elka explained, international trade is now in a fragmented condition, where countries tend to trade with their political allies.

Thus, diversifying trading partners is a necessity.

"So, I think we are on the right path because of Indonesia's (polugri) policy, that we want to be friends with anyone," he said as quoted by ANTARA, Tuesday, February 11.

This was reinforced by the findings of the International Monetary Fund (IMF).

Countries that strengthen trade relations with their allies do increase trade share with them. However, the country that is most successful in increasing trade is a country that is friends with all parties.

Therefore, the Deputy Chairman of the DEN called on Indonesia to continue diversifying trading partners, including accelerating bilateral negotiations such as the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU CEPA).

In particular, let Elka believe that the European market will be important for Indonesia in the future.

On the other hand, Indonesia also needs to increase regional economic integration by strengthening the economic mechanism in ASEAN.

"We must not allow the United States policy to shift our focus from more important things, namely continuing economic growth with other countries in the region," he said.

On a separate occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto targets the IEU CEPA negotiations to be completed in the first semester of 2025.

The negotiations have been going on for 9 years, so President Prabowo Subianto set a target for the IEU-CEPA negotiations to be completed in the first semester of 2025.

There are three main issues that are asked to be resolved immediately. First, the European Union wants Indonesia to relax import policies for products originating from Europe. Second, related to export restriction policies in the form of imposition of outbound duties, as well as the third regarding digital taxation.