The ATISA approval can offer broad benefits for business actors in the national service sector, including in the context of supporting and facilitating micro, small, and medium enterprises in exporting to ASEAN countriesJakarta (ANTARA) - Minister of Trade Muhammad Lutfi along with Commission VI of the Indonesian House of Representatives discussed three directives of President Joko Widodo as part of the national economic recovery strategy.
"The completion of these three agreements is a directive of the president of the Republic of Indonesia as an effort to facilitate economic recovery, especially during the pandemic," Lutfi noted in a statement here, Friday.
The three directives are the discussion of the Plan for Ratification of the ASEAN Trade in Services Agreement (ATISA), the Regional Comprehensive Economic Partnership (RCEP) Agreement, and the Government of the Republic of Indonesia and the Government of the Republic of Korea Comprehensive Economic Partnership Agreement (IK-CEPA).
Lutfi noted that the plan for ratification of ATISA focuses on economic transformation to realize a modern service sector, with high added value, as outlined in Vision 2045.
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ATISA, which was completed on October 7, 2020, is an improvement over the entire ASEAN Framework Agreement on Services (AFAS) in the trade services sector, financial services, and air transportation services, which is a more modern service trade agreement.
The trade minister remarked that ATISA has better arrangements than the previous agreement. Hence, it reflects a service trade agreement that meets the principles of trade discipline expected by business actors and investors.
"The ATISA approval can offer broad benefits for business actors in the national service sector, including in the context of supporting and facilitating micro, small, and medium enterprises in exporting to ASEAN countries," the trade minister explained.
Speaking in connection with the RCEP, Lutfi emphasized that Indonesia plays a key role, as it is the initiator of the most modern, comprehensive, and high-quality agreement that the country currently has.
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Hence, the RCEP should be ratified at the earliest, so that the national business community can immediately reap maximum benefits according to the agreed target on January 1, 2022.
“The advantage of RCEP lies in regulations that facilitate and encourage cumulative value that was not obtained in the implementation of previous ASEAN free trade agreements and can encourage the expansion and deepening of supply chains in the region. Thus, the parties will have easy access to raw materials and will encourage the establishment of a regional production hub,” the minister of trade stated.
Trade Minister Lutfi explained that the IK-CEPA agreement signed on December 18, 2020, marked a new chapter in the relations between Indonesia and South Korea.
IK-CEPA, as a new milestone in the partnership between the two countries, is expected to encourage increased trade and investment as well as trade cooperation between Indonesia and South Korea, where there is still room for development.
“The Indonesian and South Korean ministers of trade signed the IK-CEPA on December 18, 2020. The government targets the agreement to be ratified this year, so that it can be implemented and utilized by the Indonesian people. We believe that IK-CEPA will help to transform Indonesia's economy to be more open, strong, competitive, and attractive to South Korean investment," Lutfi remarked.
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The three approvals are expected to be ratified by Commission VI of the House of Representatives, so they can be implemented and their benefits can be garnered.
The three agreements must also be balanced with increasing product competitiveness and creating a conducive business climate that can be achieved through synergistic coordination between the government and the business world.
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Translator: Sella P, Azis Kurmala
Editor: Fardah Assegaf
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