Ministry Of Trade Projects Indonesia's Exports To Hong Kong To Reach 3.9 Billion US Dollars In 2045

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Trade (Kemendag) projects that Indonesia's exports to the Special Administrative Region (SAR) of Hong Kong in China can reach 3.9 billion US dollars by 2045 through First Protocol to Amend the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA).

Minister of Trade (Mendag) Budi Santoso, said based on the analysis that has been prepared that this protocol is predicted to reduce trading costs by 2.7 percent and increase exports of Indonesian products to Hong Kong to US$3.9 billion by 2045.

"Especially for the metal product sector, manufacturing, fishery products, finished clothing, chemical products, and textiles," he said, quoted by Antara, Wednesday, May 21.

Meanwhile, Indonesia's imports are predicted to reach 3.26 billion US dollars in 2045. This protocol is also predicted to improve Indonesia's welfare by 11.29 million US dollars.

Some of the benefits that can be learned from this AHKFTA protocol include increasing Indonesia's trading volume in the ASEAN region and the Special Administrative Region (SAR) of Hong Kong in China, then strengthening Indonesia's economic integration in the ASEAN and Hong Kong regions.

In addition, increasing trade between the two parties, increasing the smoothness of trade facilitation and reducing trade barriers, strengthening economic relations and encouraging inclusive and sustainable economic growth in the Special Administrative Region (SAR) region of Hong Kong in China.

The existence of this protocol also opens up great opportunities for increasing exports of several superior Indonesian products to the Special Administrative Region (SAR) Hong Kong in China with potential products that will benefit significantly including shrimp and the like, electronic components in the form of integrated circuits, cultivation pearls, various food mixed products, as well as cotton clothing.

Previously, AHKFTA's approval was followed by 10 ASEAN and Hong Kong member countries which are special administrative areas from China with separate trade approvals from China.

AHKFTA's approval includes trade in goods, provisions for the origin of goods, customs procedures and trade facilitation, trade in services, as well as economic and technical cooperation.

Until now, only Hong Kong has completed the ratification process, while other ASEAN member countries are still in the ratification process, including Indonesia.