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Indonesia, South Korea link up amid ‘turbulent’ economic pressures
Indonesia and South Korea are speeding up talks to conclude their Comprehensive Economic Partnership Agreement (CEPA), just as trade tensions heat up in the Asia-Pacific.
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Striking a typical South Korean pop culture pose for the 2019 Indonesia-Korea Conference in Jakarta, on Sept. 18 are (from left) Traveloka chief marketing officer Dannis Muhammad, the Office of the Coordinating Economic Affairs Minister's international economic cooperation undersecretary Rizal Affandi Lukman, PT Samsung Electronics Indonesia vice president Lee Kang Hyun, Indonesian Chamber of Commerce and Industry deputy chairwoman Shinta W. Kamdani, Trade Ministry bilateral negotiations director Ni Made Ayu Marthini, Korean Chamber of Commerce and Industry Indonesia chairman CK Song and The Jakarta Post senior editor Endy M. Bayuni. (JP/Rafaela Chandra)
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resident Joko “Jokowi” Widodo’s aggressive efforts to lure more foreign direct investment (FDI) ahead of his second term in office has been warmly met by South Korea, which also sees the need to expand its trade amidst “turbulent” economic circumstances in the wider region.
South Korea and Indonesia are ambitiously aiming to conclude talks on the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) before the start of Jokowi’s second term on Oct. 20, with a view to announcing the deal at a regional summit in November.
Trade Minister Enggartiasto Lukita announced last week the proposal to wrap up trade talks as soon as October, when he meets South Korean counterpart Sung Yun-mo on the margins of the upcoming Trade Expo Indonesia.
“Our tentative deadline is to complete in principle the general negotiations on goods and services by Oct. 16,” South Korean Ambassador to Indonesia Kim Chang Beom announced at the Indonesia-Korea Conference in Jakarta, on Wednesday.
“Hopefully this trade ministerial meeting […] will be the watershed [moment leading up] to the official announcement of the conclusion of the CEPA negotiations when President Jokowi visits Busan in November.”
Together with other ASEAN leaders, Jokowi is expected to attend the ASEAN-South Korea Commemorative Summit in Busan from Nov. 25 to 26. The event is being held to celebrate the 30th anniversary of the ASEAN-South Korea dialogue partnership.
The envoy said the CEPA would pave the way for business communities from both countries to gain a much more positive outlook of one another, as Seoul and Jakarta both faced what he called “a very turbulent environment outside, especially in the trading system”.
