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Indonesia expands partnership with Chile under IC-CEPA

Tempo - June 13, 2024

Han Revanda Putra, Jakarta – The Indonesian Trade Ministry is expanding cooperation with Chile under the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) in the investment sector, primarily in the fields of agriculture, food, tourism, hospitality, and housing.

Deputy Trade Minister Jerry Sambuaga and Deputy Minister of International Economic Relations of Chile, Claudia Sanhueza signed the agreement in Jakarta on Thursday, June 13.

Jerry said Chile is the first Latin American country to establish a comprehensive economic partnership with Indonesia. He saw this agreement as having the potential to optimize previously underutilized markets.

"This is a good opportunity for us to enter the market," Jerry said at the Trade Ministry office in Jakarta on Thursday.

The IC-CEPA for the goods trade sector was initially signed on December 14, 2017, and ratified through Presidential Regulation No. 11 of 2019. The collaboration has improved the performance of goods trade between Indonesia and Chile. In 2019-2022, the total trade value grew by 112 percent.

In the past few years, Jerry claimed Indonesia has recorded a surplus in its trade balance with Chile, reaching US$139.21 million. In the investment sector, there was an increase from 160 percent to 280 percent.

"I think this will not only increase but will also be expanded to more areas of trade and investment," he added.

Meanwhile, Sanhueza said the Chile-Indonesia partnership is crucial not only for the economic sectors but also for the international context driving the importance of this trade. She mentioned that Chile was facing challenges in food security and climate crisis. "This economic tie can help us face these challenges," she said.

Source: https://en.tempo.co/read/1879421/indonesia-expands-partnership-with-chile-under-ic-cep