Indonesian Govt Aims to Utilize IC-CEPA in Boosting Exports to South America
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17 May 2024 12:46 WIB
TEMPO.CO, Jakarta - The Ministry of Trade plans to make use of the bilateral trade agreement with Chile to boost the value of Indonesia's exports to South America.
Director General of National Export Development at the Ministry of Trade, Didi Sumedi, said he led a trade mission to Chile from the 9th to 10th of May 2024.
"Chile has a strategic position among other South American countries because it can provide access to (South America) for Indonesian products," said Didi in a written statement on Thursday, May 16, 2024 evening.
The Ministry of Trade utilizes the Comprehensive Economic Partnership Agreement between Indonesia and Chile (IC–CEPA) which was inked in 2019. It is claimed that the potential trade value in IC-CEPA can be increased by US$1 billion. "Chile is one of the priority countries targeted for boosting exports," he said.
Didi called Chile a country with a very open economy. Chile has signed 34 free trade agreements with 64 countries, including Indonesia. IC–CEPA eliminated 89.6 percent of the total tariff posts. Therefore, Indonesian business actors take advantage of the agreement through the use of a Certificate of Origin (SKA) Form of IC–CEPA.
Didi claims that this bilateral agreement positively impacts the value of Indonesia's trade with Chile by up to 21.73 percent compared to before IC–CEPA.
Didi said that there were nine business actors and associations who participated in the trade mission to Chile. These business actors and associations operate across sectors such as palm oil products and their derivatives, pesticides, chemical products, vehicle spare parts, and packaging.
More than 70 Chilean business actors attended the Indonesia-Chile business forum. The total potential transaction recorded is around US$7.45 million from palm oil products, spare parts, and packaging sectors.
DESTY LUTHFIANI
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