CSIS suggests ART could be expanded to other trading partners for optimal benefits

Jakarta — The Centre for Strategic and International Studies (CSIS) has stated that the Agreement on Reciprocal Trade (ART) could be expanded to other trading partners to provide more optimal economic benefits.

Riandy Laksono, researcher at CSIS’s Department of Economics, believes that the agreement outlined in the ART has prompted reforms in Indonesia’s trade governance. These reforms would be even more optimal if they could reach other trading partners.

“The benefits from these reforms should also be extended to other partners. Therefore, the benefits of these reforms should not be limited only to industries from the United States, but also from others,” said Riandy during a media briefing entitled “Reciprocal Trade Agreement: Red Carpet or Trade Trap” in Jakarta on Friday.

Furthermore, sources of investment are not solely from the United States, but also include participation from countries such as Japan, China, and others.

However, he did not deny that expanding the agreement also presents challenges, particularly from a political standpoint.

In the joint agreement with the United States, Indonesia secured approximately 2 per cent market access to the American market. Although, according to him, this proportion is relatively small, there is at least a reciprocal benefit that has been agreed upon.

Securing reciprocal agreements or similar concessions from other trading partners would be more challenging, said Riandy.