In addition, President Jokowi's working visit also marks the strengthening of bilateral relations between Indonesia and Australia, which had already reached 70 years.
With the IA-CEPA ratification done, the two countries have agreed on a clear roadmap so that bilateral relations in the next five years, especially trade, will be strengthened and mutually beneficial.
"This is certainly a milestone that must be conveyed to the people of Indonesia that through the IA-CEPA, market access will be open and increase Indonesia's exports to Australia," he said.
A total of 6,474 tariff posts on Indonesian export products will become zero percent when the IA-CEPA is implemented and there will be no more trade barriers for Indonesian exports in the Australian market.
Therefore, Indonesian export products are expected to be competitive and stronger in the global market. Meanwhile, Indonesia will eliminate 94.5 percent (10,229 tariff posts) in 2020.
Indonesia's main products being targeted for increased exports are TPT, carpets/rugs, furniture from wood, and automotive and spare parts.
Other potential products for export development are ethylene glycol, ethylene polymer sheets, distribution pipes for oil and gas, herbicides and pesticides, electronic equipment, machinery, rubber and its derivatives (such as car tires), coffee and processed coffee, cocoa/chocolate food and beverage, and paper and paper products.
"The export target is one of Indonesia's main strategies in reducing the trade balance deficit and in line with efforts to increase Indonesia's exports and investment in Australia and globally. The two countries can also strengthen the economic powerhouse," the trade minister explained.
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