Indonesia and South Korea Agree to Expand Cooperation

KOMPAS/LAKSANA AGUNG SAPUTRA

Indonesian Trade Minister Agus Suparmanto (left) and South Korean Trade Minister Yoo Myung-Hee (right) sign a joint declaration on concluding the Indonesia-South Korea Comprehensive Economic Partnership Agreement (IK-CEPA) on Monday (25/11/2019) in Busan, South Korea, as witnessed by Indonesian President Joko Widodo (second left) and South Korean President Moon Jae-in.

BUSAN, KOMPAS – Indonesia and South Korea have agreed to boost and expand cooperation across various sectors. President Joko “Jokowi” Widodo said he hoped the Comprehensive Economic Partnership Agreement (IK-CEPA) between the two countries, negotiations on which have been completed, would be followed up immediately.

President Jokowi made his statement during a bilateral meeting with South Korean President Moon Jae-in in Busan, South Korea, on Monday (25/11/2019). In the event, Jokowi also expressed his hope that negotiations on a Regional Comprehensive Economic Partnership (RCEP) between ASEAN and six partner countries would conclude next year.

In the meeting, President Jokowi also said that, amid the current global situation with its various problems, it was important to strengthen cooperation between Indonesia and South Korea. “I hope this document will be signed in early 2020. The Indonesia-South Korea CEPA symbolizes the two countries’ commitment to economic openness,” he said.

As host, President Moon said that Indonesia was the only ASEAN country with a strategic partnership with South Korea. “The two countries have become partners that need one another and are walking together for common prosperity,” he said.

I hope this document will be signed in early 2020.

Last year, Moon said, the value of Indonesia-South Korea trade reached US$20 billion. “As the CEPA final negotiations have been completed, the trade value is expected to increase,” President Moon said.

South Korean news agency Yonhap said that, in the meeting, the two presidents had also discussed ways to expand the scope of cooperation. They specifically discussed South Korean companies’ expansion in Indonesia’s infrastructure projects. President Moon also asked President Jokowi to ensure smooth and stable business for South Korean car producers in Indonesia.

In the bilateral meeting held on the sidelines of the 2019 ASEAN-ROK Commemorative Summit, the two state leaders also discussed the RCEP negotiation. Currently, the partnership includes the 10 ASEAN countries and six partner countries, namely China, Japan, South Korea, Australia, New Zealand and India.

All ASEAN countries plus five partners have locked 20 core chapters of the agreement in Bangkok on Monday (4/11/2019). Negotiations on several issues with India will continue in parallel ahead of its planned signing in November 2020.

After the bilateral meeting, Jokowi and Moon witnessed the signing of three documents, including one on the IK-CEPA completion declaration signed by Indonesian Trade Minister Agus Suparmanto and his South Korean counterpart Yoo Myung-hee.

KOMPAS/LAKSANA AGUNG SAPUTRA

President Joko Widodo (sixth left, in gray suit) and First Lady Iriana Joko Widodo (fifth left), accompanied by Foreign Minister Retno L.P. Marsudi (second left) and Indonesian Ambassador to South Korea Umar Hadi (far left), stroll through Gamcheon Culture Village on Sunday (24/11/2019) in Busan, South Korea. The tour took place the day before the President attends the ASEAN-South Korea Summit and several bilateral events on 25-26 November 2019 in Busan.

Milestone

In a Trade Ministry press release, Agus said the completion of the IK-CEPA negotiations was a milestone in the Indonesian-South Korean economic relationship. “Indonesia will gain wider market access compared to what it has enjoyed thus far through the ASEAN-Korea Free Trade Agreement,” Agus said.

After the signing, Trade Ministry International Trade Negotiations Director General Iman Pambagyo, who chairs the Indonesian negotiating team for IK-CEPA, said the agreement would not immediately boost investment and trade between the two parties upon ratification. Indonesia still had some work to do to attract investment and ensure trade growth.

“We have to prepare ourselves. [The results] will not come on their own. We need to be proactive. Competitiveness and ease of doing business must be improved,” Iman said.