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RCEP to benefit Indonesia's food, transportation industries
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Cranes are in operation to load and unload vessels at the Tanjung Priok container terminal in North Jakarta on Jan. 21, 2021. (Antara/Dhemas Reviyanto)
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ndonesia's membership in the Regional Comprehensive Economic Partnership (RCEP) will invigorate a wide range of sectors in the country, including food and transportation, a minister has said.
Coordinating Economic Affairs Minister Airlangga Hartarto said the trade deal would give Indonesian industries including fisheries, plantation and automotives better access to markets of RCEP members states like China, Japan and South Korea.
“The RCEP will open up greater opportunities for Indonesia, as it encourages expansion of regional production networks and regional value chains and provides a better business climate,” Airlangga said in a press briefing on Tuesday.
The RCEP is also set to remove barriers to trade in services and provide a comprehensive e-commerce ecosystem to boost member states’ digital economic growth, according to the minister.
Airlangga estimated that the trade deal could add 0.07 percentage points to Indonesia's GDP by 2040, largely through a projected US$5 billion worth of additional exports and an unprecedented trade surplus.
The House of Representatives approved on Tuesday Indonesia’s membership to the RCEP, a multilateral agreement on the biggest trade block in the world.
The RCEP involves the ten ASEAN countries along with the east Asian economic powerhouses of China, Japan and South Korea and the Oceanian countries of Australia and New Zealand.
