TEMPO.CO, Jakarta - Trade Minister Thomas Tri Kasih Lembong said that he will conclude Indonesia’s trade cooperation commitment with the European Union in the near future. In a limited meeting at the Vice President's Office, Lembong said that he wants to conclude the cooperation agreement in two years time. "I'm targeting that [the commitment] would be clear by the end of 2017," the Minister said on Tuesday, February 9, 2016.
Free trade cooperation agreement between Indonesia and the European Union, also known as the Comprehensive Economic Partnership Agreement (CEPA), have been held since President Susilo Bambang Yudhoyono’s administration in 2011. According to Lembong, discussion on the agreement had been suspended midway due to government change or the general election.
Lembong added that the effort to conclude the cooperation agreement through CEPA receive higher priority compared to the government’ plan to join the Trans Pacific Partnership (TPP). In a meeting attended by the Agriculture Ministry, Finance Ministry, Industry Ministry and the Investment Coordinating Board, discussion on the CEPA has already include technical issues. "We have already make decisions on the strategy and negotiation team," said Lembong.
Lembong added that trade commitment with the European Union must immediately be made to compete with Vietnam and Malaysia, who have already make huge progress compared to Indonesia. Vietnam, for example, has already had free access to enter European and American export market. "We could also be left behind by the Philipines if we are not careful," Lembong said.
Lembong said that several Indonesian commodities are deemed able to compete in the European market include cocoa, palm oil, textile industry, footwear, shoes, and food and beverages. "We also have advantage in horticuture [products]," the Minister said.
ADITYA BUDIMAN
