Exports Are Increasingly Sustainable, The Government Prepares A Way To Conquer Europe

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Coordinating Minister for the Economy Airlangga Hartarto does not deny that Indonesia's export performance needs special attention. The reason is, in recent months the downward trend in foreign trade has been increasingly felt.

Most recently, the Central Statistics Agency (BPS) reported that overall exports contracted by 2.75 percent year on year (yoy) in the second quarter of 2023, as a result of the weakening of the global economy which made demand decrease.

"One of the things we discussed is of course (there is pressure) in the non-commodity industry," he told the media crew, quoted on Tuesday, August 8.

Airlangga explained that a number of industrial sectors that are now of special concern to the government include the automotive, pulp and paper, furniture, including the textile (wear) and footwear (footwear) industry. Therefore, Airlangga admitted that the government has prepared a special plan to encourage exports of these industries to return to posting optimal performance.

"The government will accelerate (the settlement of the agreement) for the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA)," he said.

Airlangga said that the cooperation framework was strategic because it provided various facilities for Indonesian products that would enter the Blue Continent. Meanwhile, one of the things that the government is really targeting is tariff incentives.

"Currently, Indonesia's exports to the European Union have entered duties of 10-17 percent. Meanwhile, this does not happen for Vietnam products that are already 0 percent," he said.

On this basis, the government continues to work on finalizing a deal with the European Union regarding the completion of the Indonesia-EU CEPA agreement.

If CEPA can be completed by the end of next year then next year we still have room (to increase) exports. I think Indonesia is very reliable in this regard," he said.

For information, Indonesia and the European Union agreed to address various problems related to trade disputes and encouraged the IEU CEPA agreement to be an alternative solution to economic problems, trade and investment between the two parties.