Ministry of Industry to Accelerate Finalization of Comprehensive Co-operation between RI-Australia

INDUSTRY.co.id - Jakarta, the Ministry of Industry encourages the acceleration of negotiation settlement within the framework of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

After 11 rounds of negotiations implemented since March 2016, it is expected that this year IA-CEPA can be finalized.
 
"We hope that with the plan of the Prime Minister of Australia coming to Indonesia in July, IA-CEPA can be signed because most of the issues related to the industrial sector discussed are completed and agreed by both parties," said Minister of Industry of Airlangga Hartarto after meeting with Ambassador Australia for Indonesia Gary Quinlan AO in Jakarta, some time ago.

Airlangga mentioned, for example, Australia has agreed if Indonesia want to apply Tariff Rate Quota (TRQ) for hot rolled steel coil product (hot / cold rolled steel coil).

"But for in-quota must be applied automatic import licensing. In addition, Australia is willing to eliminate all (100%) tariff heading as the agreement comes into force, "he said.

Airlangga believes this comprehensive bilateral cooperation will increase the value of Indonesia's product exports to Australia.

"For Indonesia, exports of manufactured products that we are running are textiles, clothing and footwear, so we are asking for the import duty to be lowered, because now it is charged 10-17 percent if it can be eliminated or become zero percent," he explained.

Ministry of Industry noted, Indonesia-Australia trade volume throughout 2017 reached USD8, 53 billion, higher than the year 2016 at USD8, 45 billion. Meanwhile, the total value of trade between the two countries in the January-March period ranged USD2.03 billion.

So far, Indonesia's leading export commodities to the Kangaroo Country are, among others, furniture, chemical products and processed rubber, food and beverages, textiles, and electronics.