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Friday, 28 June 2019 10:57

Commitment to Accelerate Settlement of IK-CEPA, Indonesia-South Korea Conducts Intersession Meeting

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Director of Bilateral Negociation, Ni Made Ayu Marthini Director of Bilateral Negociation, Ni Made Ayu Marthini special

Indonesia and South Korea are committed to accelerating the completion of the Comprehensive Economic Cooperation Agreement (Indonesia-Korea Comprehensive Economic Partnership Agreement / IK-CEPA) before the end of 2019. This commitment is marked by further negotiations between Indonesia and South Korea at the IK-CEPA intersection meeting which held on 18-25 June 2019 in Jakarta.

The intersection meeting series was held in parallel with six working group meetings and two working subgroups including trade in goods (subgroups of instrument work trade safeguards and text trade subgroups of goods), services, investment, provisions of origin, customs procedures and trade facilitation (ROOCPTF), cooperation and capacity building, as well as legal and institutional issues.


"As the agreement between the two countries to finalize the IK-CEPA negotiations as soon as possible this year, this meeting shows progress in resolving several pending issues, especially related to market access and discussion of the concept of negotiating texts," said Director of Bilateral Negociation at the Ministry of Trade Ni Made Ayu Marthini .

 

During the meeting, both parties committed to making the IK-CEPA a better agreement than the commitment of the two countries in the previous agreement, namely the ASEAN-Korean FTA (AKFTA). In this meeting, the two delegates also exchanged views on the initial market access offer that was exchanged on June 14, 2019. In addition, there were advances in the discussion of the concept of trade in goods and the concept of text on security instruments
trade in which most of the articles have been agreed before.

In the working group on cooperation and capacity building, the two parties discussed several possibilities for cooperation between the two countries in the industrial sector, trade in services, and capacity building in the health sector. This working group will produce a mutually beneficial and sustainable design of Indonesia and South Korea cooperation. The cooperation, especially in the fields of industry, health, fisheries, and other potential sectors, so as to increase South Korean investment in Indonesia.

In service negotiations, both parties discussed service market access for the distribution sector, legal services, construction services, independent professionals, as well as training participants and capacity building. 


"The mutually beneficial increase in trade and two-way investment can be achieved if the IK-CEPA negotiations can be resolved," Made said.

The Indonesian and South Korean delegates are scheduled to meet again in August 2019 in the next IK-CEPA round to be held in South Korea.

 

IK-CEPA Negotiation Overview


IK-CEPA negotiations are based on the agreement between the two countries to start a comprehensive economic partnership by forming a joint study group (JSG / joint study group) IK-CEPA. The JSG meeting was held three times in 2011 and produced a JSG report in October 2011. During the period 2012-2014, the negotiations lasted until the 7th round and then stopped due to the change of government.

On February 19, 2019, the two countries agreed to reactivate the IK-CEPA negotiations through the signing of a Joint Ministerial Statement by the Minister of Trade of the two countries. IK-CEPA negotiations are targeted for completion in November 2019.

Indonesia-South Korea Trade Relations at a Glance

 

South Korea is the 7th largest export and source destination for Indonesia in 2018. The trade between Indonesia and South Korea in 2018 reached USD 18.6 billion. Indonesia's exports to South Korea were recorded at USD 9.53 billion and Indonesia's imports from Korea were recorded at USD 9.08 billion. Of the total trade, Indonesia had a surplus against South Korea of ​​USD 443.6 million.

Indonesia's main export commodities to South Korea are coal, copper ore, natural rubber, plywood, and forged tin. Meanwhile, Indonesia's main import commodities are from
South Korea is synthetic rubber, flat iron steel products, electronic integrated circuits, synthetic filament yarn woven fabrics, and other vessels. (kemendag)

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