IK-CEPA becomes new opportunity for Indonesia-South Korea's economic growth, trade and investment
SEMARANG - Deputy Minister of Trade Jerry Sambuaga said, the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) was presented as a new opportunity for economic growth, trade and investment between Indonesia and South Korea. This was said by the Vice Minister of Trade when he was the keynote speaker at the “Socialization of the Results of the IK-CEPA International Trade Negotiations”, Tuesday (21/6) in Semarang, Central Java.
“IK-CEPA is present as a new opportunity for economic growth, trade and investment of the two countries. As many as 11 thousand of our products are free or 0 tariff posts enter South Korea because of IK-CEPA. This is an extraordinary achievement and concrete benefits are obtained from IK-CEPA," said the Vice Minister of Trade.
Several commitments in the IK-CEPA, continued the Vice Minister of Trade, include, in terms of access to the goods market, Indonesia will eliminate 92 percent of tariff posts, while South Korea will eliminate 95.5 percent of its tariff posts. In addition, in the investment sector, the commitment of the two countries will open up opportunities for increased South Korean investment in Indonesia which can have a positive impact on employment. Meanwhile, Indonesia and South Korea are also committed to cooperation in various fields, including; agriculture, fisheries, forestry; trading rules and procedures; infrastructure; technology and innovation; culture and creative fields; and micro, small and medium enterprises (MSMEs).
The total value of Indonesia-South Korea trade in 2021 is recorded at USD 18.40 billion. Of this value, Indonesia's exports to South Korea amounted to USD 8.98 billion. Indonesia's imports from South Korea amounted to USD 9.42 billion. The total trade between Indonesia and South Korea in the January-March 2022 period reached USD 6.09 billion. Indonesia's exports to South Korea were recorded at USD 3.11 billion.
Meanwhile, Indonesia's imports from South Korea amounted to USD 2.98 billion. Indonesia's main non-oil and gas export products are coal, copper, vegetable oil, TV signal transmitters and ammonia. Indonesia's main non-oil and gas imports from South Korea are electronic components (memory), electronic spare parts, tankers, electronic components (processors), and propylene. (LM)