IA-CEAPA Expected to Speed Up Economic Recovery: Foreign Minister

Foreign Minister gives a press statement some time ago. (Photo by: Cabinet Secretariat Archive).

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 5 July 2020 officially came into force.

“The CEPA was signed on 4 March 2019 and ratified through Law Number 1 of 2020 on 28 February 2020,” Indonesian Minister of Foreign Affairs Retno Marsudi said Thursday (9/7).

The IA-CEPA, according to the Minister, covers not only trade agreements on goods, services, and investment but also cooperation in vocational education training (VET), higher education, and health sectors.

Indonesia will benefit from the enforcement of the IA-CEPA, among others, opportunity to boost exports as Australia will eliminate its import duties to zero percent, she added.

“The agreement will benefit Indonesia’s exports to Australia including textile products, automotive products, electronics, fishery products, and communication tools,” she said, adding that the enforcement of IA-CEPA is also expected to boost Australian investment in Indonesia, including in the field of higher education.

Under the IA-CEPA, the Minister said there is a potential rise in the country’s gross domestic product (GDP) by 0.23 percent or a rise of AU$1.65 billion per annum.

“We hope all these developments can speed up economic recovery,” the Minister said. (UN/EN)

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas