IEU-CEPA to Strengthen Market Access for Indonesian Goods: Govt

The Indonesian government views the ongoing negotiations for an Economic Partnership Agreement (EPA) with the European Union (EU) as crucial for enhancing market access for domestic products into the EU market. This agreement is expected to contribute to the diversification of the Indonesian economy and boost export competitiveness. According to government officials, the IEU-CEPA aims to reduce or eliminate tariffs and lower non-tariff barriers for Indonesian products such as agricultural produce, processed foods, and textile goods within the EU market. This is anticipated to increase the price competitiveness of Indonesian products and expand their sales within the EU. Indonesia has long sought to move away from an export structure heavily reliant on primary commodities and some processed goods, and the IEU-CEPA is seen as a significant opportunity for this transition. The government's objective is to promote the export of higher value-added products, thereby fostering the development of domestic manufacturing industries and creating employment. Furthermore, the EPA is expected to encompass not only trade but also enhanced cooperation in a wide range of areas, including investment, trade in services, intellectual property rights, and sustainable development. This is also anticipated to lead to an increase in Foreign Direct Investment (FDI) from the EU into Indonesia and facilitate technology transfer. Negotiations are currently ongoing, with efforts being made to reconcile the interests of both parties. The Indonesian government plans to proceed with the negotiations cautiously and strategically to maximize benefits for the national economy while protecting its domestic industries.