IK-CEPA can raise Indonesia-S Korea trade to US$30 billion in 2022

IK-CEPA can raise Indonesia-S Korea trade to US$30 billion in 2022

Minister of the South Korean Embassy in Jakarta Jeon Joyoung (ANTARA/Mentari Dwi Gayati)

Indonesia and South Korea have agreed on the target to conclude IK-CEPA at the end of 2019 when the 30th ASEAN-Korea Commemorative Summit takes place in South Korea. The target has been set forth in the IK-CEPA work plan
Jakarta (ANTARA) - Minister of the South Korean Embassy in Jakarta Jeon Joyoung believed that the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) will be able to increase trade between the two nations to up to US$30 billion in 2022.

"During (the South Korean) president's visit to Indonesia in 2017, the two leaders agreed to develop trade volume to more than US$30 billion in 2022 and CEPA is highly expected to make it easy to achieve," Joyoung said in an exclusive interview with ANTARA at Wisma ANTARA building in Jakarta on Thursday.

Since February 2019, the governments of the two countries have intensively discussed the CEPA to give maximum benefits to both sides, he said.

Both countries are expected to sign the IK-CEPA during the 30th ASEAN-Korea Commemorative Summit to be held in South Korea in November 2019, he said.

Earlier, Indonesian Trade Minister Enggartiasto Lukita expected the IK-CEPA to be concluded at the end of 2019.

"Indonesia and South Korea have agreed on the target to conclude IK-CEPA at the end of 2019 when the 30th ASEAN-Korea Commemorative Summit takes place in South Korea. The target has been set forth in the IK-CEPA work plan," he said during a bilateral meeting with the South Korean Minister of Trade, Industry and Energy Myung Hee Yoo on the sidelines of the 8th Regional Comprehensive Economic Partnership (RCEP) Intersessional Ministerial Meeting held in Beijing on August 2

According to data from the Central Statistics Agency (BPS), total trade between the two nations reached US$18.6 billion in 2018, with Indonesia enjoying a surplus of US$443.6 million.

South Korea is the seventh largest destination for Indonesia's exports and is the sixth largest source of Indonesia's imports.

Indonesia's exports to South Korea reached US$9.53 billion in 2018, up 14 percent from US$8.20 billion a year earlier. Meanwhile, Indonesia's imports from South Korea reached US$9.1 billion, up 9 percent from US$8.12 billion the year before.

Indonesia's exports to South Korea mainly comprise coal, copper ore, natural rubber, plywood and unforged tin, while its imports from South Korea consist of synthetic rubber, steel, and integrated electronic circuit.

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