Trade Minister Urges Industry to Maximise Trade Agreements
Minister of Trade (Mendag) Budi Santoso continues to encourage manufacturing business players, including companies investing in Indonesia, to take advantage of the trade agreements established with various partner countries.
According to him, businesses can expand market access and increase exports through the trade agreements concluded by the Indonesian Government.
“Businesses can obtain more competitive tariffs in destination export markets. Indonesia has 20 trade agreements that have been implemented, 15 more in the process of ratification, and 11 others currently under negotiation,” said Budi in a statement in Jakarta on Friday.
During a meeting with representatives of the principal of Denso Global, Denso Group Indonesia (Denso), at the Ministry of Trade office in Jakarta on Thursday (16/7), the Trade Minister received input on ways to further enhance Indonesia’s competitiveness. These included simplifying administration and strengthening infrastructure that supports smooth export activities.
In response, Budi explained that the Ministry of Trade (Kemendag) continues to simplify trade administration through the initiation of automation in the use of preferential Certificates of Origin (SKA) via the development of an electronic Certificate of Origin system (e-SKA).
Under this system, businesses exporting goods to countries that have trade agreements with Indonesia will automatically be directed to utilise the available preferential tariff facilities.
As such, the opportunity to utilise trade agreements can become more optimal. Currently, SKA automation applies to exports to the United Arab Emirates, Hong Kong, Japan, China, South Korea, Australia and Pakistan.
“Indonesia’s SKA system has been made automatic. When a business exports to a country that already has a trade agreement with Indonesia, the system will immediately direct them so that preferential tariff facilities can be utilised,” said Budi.
He also affirmed that the Ministry of Trade will continue to coordinate with relevant ministries and agencies. This coordination is necessary to help resolve various obstacles faced by businesses, including in the area of logistics.
“Every challenge faced by businesses on the ground needs to be communicated. That way, we can promptly follow up together with the relevant ministries and agencies. We are committed to delivering solutions that support smooth exports and create an increasingly conducive business climate,” he added.