Broadening of Indonesia's role through the global supply chain (that comes) from the spillover effect potentially increases this country's exports across the globe for some 7.2 percent.
Jakarta (ANTARA) - Indonesian Minister of Trade Agus Suparmanto affirmed that the newly signed Regional Comprehensive Economic Partnership (RCEP) will facilitate the nation to reap the benefit of the spillover effect on its export performance.

The RCEP was signed on Sunday (Nov 15) by 15 members comprising 10 ASEAN states along with five external partners: China, Japan, South Korea, Australia, and New Zealand.

During a virtual press conference after signing the pact, Suparmanto affirmed that the spillover effect might emerge to offer trade benefits for Indonesia from both the members of RCEP with the free trade agreement as well as non-RCEP-members.

"Broadening of Indonesia's role through the global supply chain (that comes) from the spillover effect potentially increases this country's exports across the globe for some 7.2 percent," he noted.

Thus, the RCEP will facilitate Indonesia’s greater involvement in the supply chain of the world trade, which the government expects will also expedite post-pandemic national economy recovery, Suparmanto expounded.

However, he highlighted the importance of upgrading national products for added value to boost competitiveness in global commerce.

"A fundamental change (is required) to place the strengthening competitiveness program as our main agenda in the economic sector. This is (for) both software and hardware, services and goods, big firms and small-medium enterprises, government and private," he stated.

The RCEP was initiated in 2011, while the first round of negotiations began in 2013. After an uneasy and protracted process for nearly a decade, this pact is considered be the biggest in the world that include some 2.2 billion people, or 30 percent of the global population, and some 29 percent of the world's gross domestic product.


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Translator: Suwanti
Editor: Fardah Assegaf
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