Boost the Export, Indonesia-Turkey Make Stronger Trade Cooperation

Boost the Export, Indonesia-Turkey Make Stronger Trade Cooperation

InfoSAWIT, JAKARTA - Indonesia andTurkeyofficially starts to make trade cooperation, Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA) in the early of this year. The first round of IT-CEPA was held on pada 8-9 January 2018 in Hotel Shangrila, Jakarta after it was postponed for too long.

Delegation of Indonesia was led by General Director of International Trade Negotiation, who was also the Chief of Negotiation of Indonesia for IT-CEPA, Iman Pambagyo, while the delegation ofTurkeywas led by Director-General for the EU Affairs, Ministry of Economy of Turkey, Murat Yapici.

“In the first round, both sides discussed Terms of Reference (ToR) IT-CEPA, andmade the same perspective about the issues in trade, such as, rules of origin (ROO), customs and trade facilitation, trade remedies, technical barrier to trade, sanitary and phytosanitary, andlegal matters,” Imansaid in the official statement to InfoSAWIT, Wednesday (10/1/2018).

The initiation of the IT-CEPA that runs in January 2018 is the continuity of the signing of Joint Ministerial Statement between Secretary of Trade, Indonesia, Enggartiasto Lukita andSecretary of Economy, Turkey, Nihat Zeybekçi in Ankara, Turkeyon 6 July 2017.

The signing was witnessed by President ofIndonesia, Joko Widodo andPresident ofTurkey, Recep Tayyip Erdo?an. Both Presidents mandated that the meeting should be done immediately. President Joko Widodo andPresident Erdo?an also targeted, the trade between the two countries could be reaching US$ 10 billionin 2030.

Iman thought, the IT-CEPA would significantly increase the exports from Indonesia to Turkeyby eliminating the trade barriers in both countries, both tariff and non-tariff. The negotiation is hoped to recover the exports from Indonesia toTurkey, which in 2012-2016 the exports decreased substantially.

“The major issue that Indonesia faced in Turkey is the expensive incoming tax and other taxes, compared to the competitors which have the same agreement with Turkey. It is hoped, CEPA could increase our competition of our products there,” he said.

The negotiation of IT-CEPA would be done incrementally. The first focus is the agreement in goods to trade within the target: it would be accomplished and signed in the end of 2018. This could accelerate the implementation so that the Indonesian exporters could advantage the IT-CEPA. In the next phase, the negotiation would focus in service trade, investments, and others.

“The acceleration of the negotiation with Turkey is very important to mitigate the decreasing exports from Indonesia for not being able to compete with our neighborhood products,” he said.

The total trade between Indonesia and Turkeyin 2016 reached US$ 1,33 billion. The exports from Indonesia reached US$ 1,02 billionandthe import reached US$ 311,1 million, within the surplus for Indonesia reaching US$ 712,9 million. Turkeyis the 28th country to export non-oil and gas and the 34th origin country to import non-oil and gas for Indonesia in 2016. (T2)

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