Trade Minister Zulhas: IUEA CEPA Implementation Starting September 2023, Encourages Trade Relations Between The Two Countries

The Minister of Trade of the Republic of Indonesia, Zulkifli Hasan (Between/Desca Lidya Natalia)

JAKARTA - Trade Minister Zulkifli Hasan said the implementation of the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE CEPA), which officially applies as of September 1, 2023, could improve trade relations and the economy of the Indonesian Emirates. Arab (PEA).

This was conveyed by Trade Minister Zulkifli Hasan at the Bilateral Meeting with the State Minister for Foreign Trade Affairs PEA Thani Bin Ahmed Al Zeyoudi at the St. Hotel. Regis, Jakarta on the sidelines of the 23rd Meeting of the ASEAN Economic Community Council (ASEAN Economic Community Council), Sunday, September 3.

"I am optimistic that the trade between Indonesia and PEA will increase, especially with the start of the implementation of the IUAE CEPA on September 1, 2023," he said.

The total trade between Indonesia and the United Arab Emirates in the January-June 2023 period was recorded at USD 2.21 billion. Of this value, Indonesia's exports to the United Arab Emirates amounted to USD 1.20 billion and Indonesia's imports from the United Arab Emirates amounted to USD 1.02 billion.

Meanwhile, in 2022, the total trade between the two countries will reach 5.05 billion dollars, an increase compared to the previous year which was recorded at 4.03 billion dollars.

At the meeting, the man who is familiarly called Zulhas also suggested that a Joint Committee (JCM) meeting be held at the Senior Officials and certain Committees (Statures Trading Committee and Islamic Economic Committee) between the two countries be held immediately. The goal is for the implementation of the IUAE CEPA to run smoothly.

With the implementation of the new IUAEA CEPA, he continued, there are a number of technical issues that need to be resolved immediately by the two countries.

"For this reason, Indonesia proposes to PEA to immediately hold a Joint Committee (JCM) meeting at the Senior Officials and certain Committees (Conmitt for the Trade of Goods and Islamic Economic Committees) between the two countries to resolve technical issues to ensure the smooth implementation of approval," he explained.

Indonesia, continued Zulhas, also encourages cooperation between the two business actors, for example through the Indonesia-PEA Business Forum, business roadshow, trade mission, and collaboration between the Free Trade Agreement (FTA) Center Indonesia and related parties in PEA.

Zulhas explained that the Indonesian government has issued five technical regulations related to the implementation of the IUAE CEPA, namely the Minister of Finance Regulation (PMK) concerning the Determination of Entry Fees, PMK on Procedures for Imposing Import Duty Tariffs on Imported Goods, and Regulation of the Minister of Trade (Permendag) Number 28 of 2023 concerning Provisions for the Origin of Goods and Provisions for Issuance of Certificates of Origin for Indonesian Goods.

In addition, Permendag Number 29 of 2023 concerning Policy for the Implementation of Tariff Rate Quota (Tariff Rate Quota) for Imports of Certain Goods and Regulation of the Minister of Industry Number 22 of 2023 concerning the Utilization of Tariff Level Quota for Imports of Certain Plastic Raw Materials.

In addition, Zulhas said, Indonesia continues to strive to implement the results of the 12th Ministerial Conference (KTM) of the World Trade Organization (WTO).

"I support the successful holding of the 13th WTO Ministerial Conference (Ministerial Conference) which will be held in February 2024 in Abu Dhabi," he said.

Meanwhile, PEA Minister of Foreign Trade Thani Bin Ahmed Al Zeyoudi hopes that the implementation of the IUAE CEPA will further improve business to business (B to B) relations between the two countries.

To encourage this, he said, the PEA Government plans to make a business delegation visit to Indonesia on September 20-21, 2023.

"I propose the involvement of the Indonesia-UAE business council to support the improvement in trade performance between the two countries," said Minister Thani.

Furthermore, Minister Thani informed that the 2023 United Nations Climate Change Conference (COP28) will be held on November 30-12 December 20023 in Dubai.

"We hope that the President of the Republic of Indonesia Joko Widodo can attend the event," he said.