JAKARTA - Indonesia made a new history with the signing of the Indonesia–United Arab Emirates Comprehensive Economic Partnership Agreement, or IUAE–CEPA by the Indonesian Minister of Trade Zulkifli Hasan and the Minister of Economy of the United Arab Emirates (UAE) Abdulla bin Touq Al Marri in Abu Dhabi, Friday (1/7). The exchange of agreement texts was also witnessed directly by President Joko Widodo and UAE President Sheikh Mohammed bin Zayed Al Nahyan at the Al Shatie Palace.
“Today is a historic day for all of us with the signing of the IUAE–CEPA. This will be remembered as a new chapter of bilateral relations between Indonesia and the United Arab Emirates," explained Trade Minister Zulhas during a press conference.
The two countries managed to conclude a trade agreement quickly. In just four rounds of negotiations over nine months from September 2021 to June 2022. This shows the strong commitment of both countries driven by the directives of the two presidents so that negotiations can be concluded immediately. This agreement is expected to encourage economic cooperation in various fields, especially trade between the two countries.
Total trade between Indonesia and the United Arab Emirates reached USD 4 billion in 2021 with Indonesian exports of USD 1.9 billion and imports from the UAE of USD 2.1 billion. Meanwhile, in the period January–April 2022, the total trade between the two countries has reached USD 1.5 billion (an increase of 15 percent compared to the same period in 2021 which amounted to USD 1.3 billion), with exports worth USD 714 million and imports worth USD 831. million. Indonesia also hopes that the IUAE–CEPA will attract more investment from the UAE. In 2021, the UAE's investment value in Indonesia will be around USD 16.1 million. Therefore, the potential for increased trade and investment within the IUAE–CEPA framework is enormous.
The IUAE–CEPA agreement covers arrangements in the fields of trade in goods, trade in services, investment, intellectual property rights, Islamic economy, provisions on origin of goods, customs procedures and trade facilitation, economic cooperation, government procurement of goods and services, small and medium enterprises, digital trade , as well as legal provisions and institutional issues. (LM)