Jakarta (ANTARA) - The Indonesia\u2013European Union Comprehensive\nEconomic Partnership Agreement (IEU-CEPA) is considered capable of\nproviding a double advantage for Indonesia.<\/p>\n
William Simadiputra, Head of Research at DBS Group Research, stated\nthat this agreement serves as a windfall resulting from United States\ntariff-related protectionism, allowing Indonesia to seize opportunities\nfor deeper cooperation with European nations.<\/p>\n
\u201cThis actually provides a double advantage for Indonesia,\u201d William\nremarked during a media briefing in Jakarta on Thursday.<\/p>\n
According to him, through IEU-CEPA, Indonesia has the opportunity to\nbecome a manufacturing hub for European companies, particularly if they\nneed to establish new factories in certain countries. Indonesia could be\nconsidered an alternative destination.<\/p>\n
\u201cTherefore, this serves as a positive point for Indonesia to attract\nforeign direct investment (FDI). Another opportunity we might see is\nthat Indonesian commodities, such as palm oil, could also provide\nbroader benefits,\u201d he said.<\/p>\n
On the same occasion, Radhika Rao, Senior Economist at DBS Group\nResearch, stated that strengthening the relationship between Indonesia\nand the European Union is vital, noting that the EU has been closely\nmonitoring Asia.<\/p>\n
\u201cThis is very good news as it opens up the Blue Continent (Europe) to\nwork closely with Indonesia. One of the sectors, of course, is the\nautomotive sector,\u201d said Radhika.<\/p>\n
He continued that European nations such as Germany are currently\nfacing challenges arising from the electric vehicle (EV) sector, but\ncollaboration with Indonesia regarding commodity supply chains would be\nhighly beneficial.<\/p>\n
\u201cTherefore, I certainly see this as a good counterbalance to\ngeopolitical risks,\u201d he added.<\/p>\n
For information, the Government aims to have the Indonesia-European\nUnion Comprehensive Economic Partnership Agreement (IEU-CEPA) documents\nfinalised and signed by October 2026.<\/p>\n
Following the ratification process, the trade cooperation framework\nwill be brought to the respective parliaments for discussion.<\/p>\n
Coordinating Minister for Economic Affairs, Airlangga Hartarto,\nstated that a Presidential Regulation (Perpres) will be issued to ensure\nIEU-CEPA becomes a priority in discussions within the Indonesian House\nof Representatives (DPR RI).<\/p>\n
Once the derivative regulation in the form of a Government Regulation\n(PP) is issued, IEU-CEPA is expected to come into effect by the\nbeginning of 2027.<\/p>\n
Furthermore, Airlangga assessed that the implementation of this trade\nagreement will be a game changer for Indonesia by opening up wider\nmarket access for both parties.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ieu-cepa-viewed-as-providing-double-advantage-for-indonesia-1789042692", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }