Celios: I-EU CEPA could boost Indonesian exports

Jakarta (ANTARA) - Economist at the Center of Economic and Law Studies (Celios) Nailul Huda has said the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) could help increase Indonesian exports.

“I see an opportunity to increase Indonesian exports to the EU in goods affected by burdensome tariff rules from the United States. Goods such as textiles should be able to have their exports diverted from the US to EU countries, which still import heavily from Bangladesh and India,” Nailul said when contacted by ANTARA in Jakarta on Wednesday.

According to him, national textile products are currently facing challenges such as restrictions from the US, which have affected many textile companies.

“Indonesia should also further increase its export goods to the EU as a diversification of our goods away from China. China is experiencing an economic slowdown and should no longer be seen as the main export destination,” he said.

Nailul also said Indonesia must immediately implement regulations related to the European Union Deforestation Regulation (EUDR) to provide clear rules regarding exports of forestry products to Europe.

For information, Trade Minister Budi Santoso has said the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) will be a trade agreement with the highest level of tariff commitment Indonesia has ever granted.

Budi said this provides greater opportunities for Indonesian products to enter the European Union market with more competitive tariffs.

Budi said the I-EU CEPA will liberalise around 98 percent of tariff lines for both parties, covering around 99.5 percent of total import value.

According to him, this level of liberalisation provides greater opportunities for Indonesian products to enter the European Union market with more competitive tariffs.

A number of Indonesia’s main export products, such as palm oil and its derivatives, textiles, footwear and rubber products, will receive zero percent tariffs once the agreement comes into force.

Budi assessed that the I-EU CEPA will be a new momentum to expand the market for Indonesian products in Europe, encourage investment especially in strategic sectors, improve Indonesia’s position in the global supply chain, and strengthen a mutually beneficial economic partnership between Indonesia and the European Union.