Airlangga Reveals A Number Of Benefits Of Indonesia's Participation In The Indo-Pacific Economic Framework For Prosperity Forum

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Doc. ANTARA)

JAKARTA - Indonesia continues to actively participate in various international forums to continue to be carried out in order to strengthen its position in the global economy and realize inclusive and sustainable national economic growth.

Indonesia's participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) forum is one of the efforts made by the Government.

The IPEF Forum itself focuses on four things that are economic challenges for almost all countries in the Indo-Pacific region. The four pillars that are discussed in the IPEF are Trade Facilitation, Supply Chain, Green Economy (Clean Economy), and Fair Economy (fair Economy).

"What has been resolved is Pilar II, the legal screening has been completed and has been signed, namely regarding supply chain. And yesterday, all leaders, the President, the Prime Minister of fourteen countries jointly launched the results of the signing of the Pillar IPEF II," said Coordinating Minister for the Economy Airlangga Hartarto in his official statement Sunday, November 19.

At the Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM) on November 14, 2023, all IPEF member countries agreed to announce a substantial completion of Pillar III (Clean Economy) and Pillar IV (fair Economy).

"Pilar III is related to green economy and Pilar IV regarding fair economy, where fair economy includes corruption, then also related to the FATF (Financial Action Task Force), all of which have also been completed technically," said Airlangga.

Airlangga said that related to Pilar I (Trafficking) there are still three unfinished cluster issues, namely those related to agricultural, environmental, and labor clusters.

Furthermore, Airlangga said that the three clusters are expected to be discussed again in the first quarter of next year.

So that actually there are four derivatives of the IPEF. Thus, this is actually one of the standards of higher trade, investment, and economy, more just, anti-corruption, transparent, and also good regulatory practice," said Coordinating Minister Airlangga.

Airlangga said that there are financing facilitations prepared through IPEF, including continuing the commitment of Just Energy Transition Partnership (JETP) and Partnership for Global Infrastructure and Investment (PGGII), where Indonesia has been given priority from seven countries that will receive facilitation regarding semiconductors.

Regarding critical minerals, Coordinating Minister Airlangga said that further discussions would be carried out.

All partner countries IPEF have agreed to launch critical minerals dialogue to strengthen supply chains in the future and create jobs in the clean energy sector. This is expected to provide benefits for the production of Electric Vehicle (EV) and its derivatives in Indonesia.

Revealing a number of benefits of Indonesia's participation in the IPEF forum, Airlangga explained that Indonesia's supply chain will be a part that is considered reliable, safe, the standard is the same, and can be included in the global supply chain.

"Then the second, critical minerals which are also being discussed in the first quarter of next year," said Airlangga.