TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto and Deputy Minister of Trade Jerry Sambuaga held a bilateral talk with South Korean Minister of Trade, Industry and Energy Ahn Duk-Geun in Seoul on Wednesday, May 22.

Jerry said they deliberated the flow of incoming goods, especially raw materials and capital goods, and the enforcement of the Indonesian Trade Minister’s Regulation (Permendag) No. 8 of 2024.

“Indonesia is committed to accelerating the flow of goods, particularly raw materials and capital goods needed for fostering trade cooperation through the Trade Minister’s Regulation No. 8 of 2024. This regulation grants relaxation for the imports of raw materials and capital goods,” Jerry said in a written statement on Friday, May 23.

He said that one of the relaxations was the exclusion of technical considerations by the Industry Ministry for various commodities, such as electronics, traditional medicines and health supplements, cosmetics and household supplies, footwear, apparel and apparel accessories, bags, and valves.

“It is the government’s concrete measure to create a conducive and favorable business climate by speeding up the licensing process for raw materials and capital goods,” Jerry added.

In response, South Korean Minister Ahn Duk-Geun commended the regulation as the government’s prompt response and resolution to ensure the seamless inflow of imported goods.

“It is hoped that the policy will facilitate the flow of raw materials for Korean companies in Indonesia and expand market access for products manufactured by both countries,” said Ahn in a written statement.

He also lauded the implementation of the Indonesia-South Korea Comprehensive Economic Cooperation Agreement (IK-CEPA) and the establishment of the Regional Comprehensive Economic Partnership Support Unit (RCEP Support Unit or RSU). “We are confident that this will yield many benefits to all country members,” he added.

RCEP is a free trade agreement involving 15 countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, China, Japan, South Korea, Australia, New Zealand, and India. Indonesia began joining RCEP on January 2, 2023.

Ahn explained that total trade data between Indonesia and South Korea from January to March 2024 was tallied at US$5.14 billion or Rp82.6 trillion at an exchange rate of Rp16,070 per US dollar. Out of this value, Indonesia's exports to South Korea totaled US$2.7 billion or Rp43.3 trillion, while Indonesia's imports amounted to US$2.44 billion or Rp39.2 trillion.

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