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Jakarta Post

RCEP expected to increase competition for RI firms

  • Dzulfiqar Fathur Rahman

    Jakarta

Jakarta   /   Wed, November 18 2020   /  01:00 am
Workers complete the production of knitwear at the Rajong Binong Jati Center, Bandung, West Java, Friday (03/06/2020). The Indonesian Textile Association (API) states, due to Covid-19 the textile industry and textile products (TPT) is constrained by the supply of raw materials and machine parts for the garment industry from China which is currently suspended. (Antara/Raisan Al Farisi)

Indonesia might see increased competition in various industries following the signing of the Regional Comprehensive Economic Partnership (RCEP), despite the deal providing wider market access and investment opportunities, business players and experts have stated. As the world’s largest regional trade agreement, the RCEP could potentially pose challenges for Indonesia’s telecommunications and information and technology industries, as well as the labor-intensive textile, footwear and auto industries, according to the Indonesian Chamber of Commerce and Industry (Kadin).

“The government needs to boost the competitiveness of our investment climate in these industries,” Kadin deputy chairwoman Shinta Kamdani told The Jakarta Post via text message on Tuesday.

“This is to ensure that the potential investment from the RCEP is cha...