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House approves Indonesia-EFTA trade deal
The House of Representatives has approved the bill on IE-CEPA, an economic agreement that would give Indonesia greater access to investment, help small and medium enterprises (SMEs) connect to global value chains and increase overall exports.
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Trade Minister Muhammad Lutfi speaks before the House after legislators approved a bill on the Indonesia-EFTA Comprehensive Economic Partnership Agreement (IE-CEPA) in Jakarta on Friday. (Courtesy of Trade Ministry)
I
ndonesia is one short step away from having its first trade agreement with European countries after legislators approved a bill over a deal between Indonesia and the European Free Trade Association (EFTA).
The House of Representatives approved on Friday the draft for the Comprehensive Economic Partnership Agreement (IE-CEPA) between Indonesia and the EFTA, which comprises Iceland, Lichtenstein, Norway and Switzerland.
The legislation is now pending a signature from President Joko “Jokowi” Widodo that would immediately make the IE-CEPA come into effect. The President very rarely rejects bills approved by the house.
“We ask all members again, do we agree to turn the bill over the [IE-CEPA] into law?” said House Deputy Speaker Sufmi Dasco Ahmad, who knocked his mallet after hearing a resounding “Agreed!” from other legislators.
Trade Minister Muhammad Lutfi said that the agreement would open Indonesia to new markets and investors, boost small and medium enterprises' (SMEs) participation in global value chains and increase overall exports.
“We are optimistic that, with this bill’s implementation, the agreement can help Indonesia in its post-COVID-19 economic recovery,” he said at the House plenary session on Friday.
Lutfi went on to say that Indonesia would also push for the Indonesia Sustainable Palm Oil (ISPO) certification to be accepted by Switzerland, as stated in the IE-CEPA framework.
