InfoSAWIT, JAKARTA – Minister of Trade Indonesia, Enggartiasto Lukita andVice Minister of Trade Chile, Rodrigo Yáñez Benítez did Instrument of Ratification (IoR) Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) exchange on Tuesday (11/6/2019) in the Ministry of Trade Indonesia, Jakarta.
“IC-CEPA is the history. Besides it would be the first trade agreement with the country in South America. IC-CEPA would be the country to export the products from Indonesia in South America easier. The strategic geographic makes Chile as the hub country to export in South America,” he said in the official statement to InfoSAWIT.
The exchange of IoR is the important legal procedure before implementing IC-CEPA. As it is mandated in the agreement, IC-CEPA would run 60 days after the exchange of IoR, that is, on 10 August 2019.
IC-CEPA was signed by both country on 14 December 2017 in Santiago, Chile. By IC-CEPA both countries would get the export referential price.
After almost 18 month - ratification process in each country, on 11 June 2019 both countries officially finished the process. for Indonesia the process officially run by the President’s Regulation No. 11 / 2019 about Inauguration of Comprehensive Economic Partnership Agreement between the Government of the Republic of Indonesia and the Government of the Republic of Chile.
By IC-CEPA, 89,6 percent of tariff posts of Chile would be eliminated for the products from Indonesia to Chile while Indonesia would eliminate 86,1 percent of tariff posts to the import products from Chile.
The main products of Indonesia which get the preference are palm oil and its derivatives, pulp and paper, fishery, food and drink, automotive products, meuble, sorbitol, textile products, and others,
Based on the agreement after IC – CEPA implementation, both countries would follow up the next phase, that is, the trade in service and investment.
“After goods tariff agreement, the next is the negotiation in service and investment because IC-CEPA should be done in phase. The deadline would be discussed in Joint Committee of IC-CEPA based on the same agreement,” Enggartiasto said.
A Glance of Billateral Trade between Indonesia-Chile
The total trade between the countries in 2018 reached US$ 274 million. In January-March 2019 the total trade between the two reached US$ 56,1 million within the exports from Indonesia reaching US$ 34,9 million and the imports reaching US$ 21,2 million. Chile is the 55th export country from Indonesia within the total exports reaching US$ 158,9 million in 2018, or increased 0,3 percent compared to those in the previous year reaching US$ 158,5 million.
The main export products from Indonesia to Chile are foot wear, fertilizer, cars, organic surfactant, locust beans, sea-grass, sugar bit, and sugarcane. While the main import products from Chile to Indonesia are wine, tine, chemical wood pulp, fat and oil, and the oil and sea mammal fraction. (T2)