JAKARTA, KOMPAS – The Indonesian and Chilean governments have agreed to complete their Comprehensive Economic Partnership Agreement (CEPA) this year. It is hoped that the agreement will wrap up the process of negotiation, which began back in 2013, and open up opportunities for Indonesian products to expand their export market, especially to nontraditional markets.
The agreement was one of President Joko "Jokowi" Widodo’s points of discussion when he welcomed the state visit of Chilean President Veronica Michelle Bachelet Jeria on Friday May 12, at Merdeka Palace, Jakarta. “We hope that the matter of CEPA negotiation, especially that related to trade in goods, can be finished this year. The visit gives momentum just as Indonesia is trying to raise investment from nontraditional partners and Chile is one of the priorities,” said President Jokowi in an address with President Michelle Bachelet on Friday.
Having been briefly halted due to some issues, Indonesia and Chile recommenced their CEPA negotiation this year. According to President Jokowi, the partnership agreement with Chile is important because the country is Indonesia’s third largest trade partner in South America. It is understandable therefore, that trade and investment were the main topics of discussion at yesterday’s bilateral meeting.
Aside from speaking on the partnership agreement, the president also spoke of his wish to see the two countries engage in cooperation in the fields of fisheries, strategic industry and agriculture. Indonesia and Chile have engaged with one another in international forums such as the Non Block Movement, Asia Pacific Economic Cooperation (APEC) and the Forum for East Asia-Latin America Cooperation (FEALAC). The president is confident that this bilateral tie will improve cooperation between the two countries at these forums.
President Michelle Bachelet said that she is relieved the negotiation, which has been ongoing for a number of years, will finally be completed. Bachelet said she believes the partnership will increase the trade of both countries. Chile sees Indonesia as a country with huge potential.
“Just as Chile has experience with solar energy, Indonesia has experience with geothermal energy,” Bachelet said.
The economic partnership with Indonesia, Bachelet said, is not merely a matter of friendship between the two countries, but has reached the level of camaraderie. Bachelet believes that the economic partnership with Indonesia could be developed into cooperation in other fields.
“We have pushed forward bilateral integration in the fields of trade, culture and politics. We also hope to be able to intensify relations in other fields,” Bachelet said. Bachelet said that Indonesia is one of the countries in Southeast Asia, which in has experienced significant progress in development over the last few years.
President Michelle Bachelet visited Indonesia for two days. Apart from holding a bilateral meeting with President Jokowi, Bachelet also led a Chilean government delegation to meet with Indonesian businesspeople. President Bachelet also took time to visit the ASEAN secretariat in Jakarta.
According to the Indonesia Foreign Ministry website (www.kemenlu.go.id), Chile is Indonesia’s third biggest trade partner in South America. The planned comprehensive economic partnership agreement between Indonesia and Chile, which is currently still under negotiation, opens up the potential for increased trade and investment. The partnership also expands the opportunity for Indonesian products to reach the international market with nontraditional partners.
Citing information from the Foreign Ministry website, Chile is the key for Indonesia’s exports to enter the South American market. In 2016, the trade volume between Indonesia and Chile reached US$227 million, with Indonesia booking a surplus of US$60.5 million.