"We agreed to continue the Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA) negotiations, with the hope that it will be completed in 2021, as mandated by the two leaders of Indonesia and Turkey," Marsudi noted after meeting Turkish Foreign Minister Mevlüt Çavuolu at the Ministry of Foreign Affairs here on Tuesday.
Indonesia and Turkey commenced negotiations on IT-CEPA in January 2018 in Jakarta, a few months after President Joko Widodo undertook a state visit to Ankara in July 2017.
Both nations have, so far, concluded the fourth round of IT-CEPA negotiations held on January 30-31, 2020, in Ankara, Turkey.
During the meeting, the delegations of both nations discussed plans to lower and eliminate tariffs, as well as various issues related to customs, quarantine of goods, legal affairs, trade facilities, and security.
IT-CEPA is projected to help Indonesia and Turkey increase the value of bilateral trade that is currently not considered optimal.
Minister Çavuolu stated that the total trade volume between both nations had only reached US$1.5 billion (some Rp.21.2 trillion).
"1.5 billion US dollars ... is still far from our true potential," Çavuolu stated.
Both nations agreed to boost the total trade value to US$10 billion (some Rp141.45 trillion) through IT-CEPA.
Çavuolu also highlighted that Turkey had agreed to boost the value of investment in Indonesia.
"Turkish companies are interested in investing in Indonesia even in the midst of a pandemic," he stated.
Marsudi highlighted that the Indonesian government had welcomed the interest of Turkish investors in investing more in Indonesia.
The two countries are currently holding discussions on several cooperation projects in the fields of shipping, agriculture, and infrastructure.
"After the virtual meeting between the minister of public works and public housing of Indonesia and the minister of trade of Turkey last July, we have seen the high interest of Turkish construction companies to invest in infrastructure development in Indonesia, especially in toll road and dam projects," she noted.
Both nations have actively explored cooperation in the defense industry. Last week, Indonesian Defense Minister Prabowo Subianto had embarked on a visit to Turkey to explore cooperation.
In the technology and industrial sectors, Indonesia and Turkey began intensive talks since June 2020 to promote cooperation in the aerospace industry and medical and pharmaceutical technology as well as for the production of electric cars, rocket and shuttle launch sites, satellites, and satellite launch vehicles, according to Marsudi.
The Turkish foreign affairs minister is in Jakarta to discuss preparations for a planned visit of President Erdogan to Indonesia. (INE)
Related news: Turkish foreign minister in Jakarta to discuss Erdogan's planned visit
Related news: Indonesia-Turkey defense industry cooperation should be strengthened
Related news: MPR chief seeks Turkish parliament's support to expedite IT-CEPA talks