Vice Minister of Trade: IE-CEPA Result: Palm Oil is Welcome in Europe

Vice Minister of Trade: IE-CEPA Result: Palm Oil is Welcome in Europe

PalmOilMagazine, JAKARTA – Ministry of Trade held socialization about the international discussion results namely about Indonesia-European Free Trade Association Comprehensive Economic Partnership Agreement (IE-CEPA) in hybrid in Jakarta, Monday (24/5).

It was attended by Vice Minister of Trade, Jerry Sambuaga; General Director of International Trade Negotiation, Djatmiko Bris Witjaksono; Vice Chairman of Commission VI Indonesian Legislators, Aria Bima; member of Indonesian Legislators, Herman Khaeron; the speakers - Director of Bilateral Negotiation, Ni Made Ayu Marthini; and Vice Chairman of Indonesian Chambers, Shinta W Kamdani.

Jerry in his description told that the countries of EFTA (Swiss, Norway, Iceland, and Liechtenstein) are the ideal partners to make CEPA. IE-CEPA agreement is the chance for Indonesia to increase the exports to European Union wider and would symbolically have meaning to increase palm oil profile from Indonesia in global.

He also told, there was referendum in IE-CEPA in Swiss because of sustainable issues in palm oil from Indonesia. “But the referendum is good for Indonesia because the people of Swiss mostly want to ratify IE – CEPA and in the same time, they confirm the acceptance of palm oil products from Indonesia as the sustainable ones,” he said, as in the official statement to PalmOilMagazine.

One agreement which is useful the most in IE – CEPA is income tax reaching o percent. Indonesia would have erased 7.042 tariff post from Swiss and Liechtenstein, 6.338 tariff post from Norway, and 8.100 tariff post from Iceland. 

“By the IE-CEPA implementation, there would be more products from Indonesia to EFTA countries with more competitive price. It is hoped, the stakeholders could take the chances to increase the exports, and investment. IE-CEPA with the support of UU Cipta Kerja should help economic recovery which once decreased because of Covid-19 pandemic,” he said.

He also mentioned, to facilitate and help small, medium businesses (SMB) to economic recovery, Ministry of Trade has 1.500 SMB programs. In IE – CEPA, there are special schemes to increase the roles and chances for SMB through the cooperation and same promotion and capacity development to do partnership with the local.

Meanwhile, Djatmiko told, the legal to implement IE-CEPA agreement was signed by President Indonesia through Regulation No. 1 / 2021on 7 May 2021. “After the regulation is published, the government still needs other legal instruments to implement IE-CEPA, such as, the regulation of Minister of Trade and Minister of Finance. The government still needs the supports from Indonesian Legislators to encourage the process and IE-CEPA could run in the second semester of 2021,” he said.

Aria Bima said, Commission VI Indonesian Legislators would monitor the advantages of IE-CEPA agreement. It could be strategic for Indonesia because the products from Indonesia would indirectly be sold in Europe and other partners to cooperate with EFTA countries whole over the world.

“By the meeting between Commission VI Indonesian legislators and Ministry of Trade in March 2021, IE-CEPA is approved and we also note that the agreement could encourage the economic cooperation and increase the exports, investment, and competition from Indonesia and EFTA countries,” he said.

In 2020, the trade between Indonesia and EFTA reached US$ 3,34 billion. The exports from Indonesia to EFTA countries reached US$ 2,45 billion while the imports of Indonesia from EFTA reached US$ 882,53 million and Indonesia got surplus reaching US$ 1,57 billion. The main export commodities from Indonesia to EFTA were gold, jewelry, rests of precious metal, optic fiber, bulldozers. While the imports from EFTA to Indonesia were explosive materials, ammunition, inks, watches, hand watches from precious metal, and fish.

In 2020, DKI Jakarta was in the third rank as the exporter province in Indonesia with EFTA with the contribution reaching 3,32% in national level or reaching US$ 111 million. The mainstay products in DKI Jakarta that would have 0 percent tariff in IE-CEPA agreement would be motor bike, structures, silver, and fresh fish. (T2)

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