It is expected that we can increase our exports to reduce or even eliminate the trade deficit through the implementation of the agreement.
Bogor, West Java (ANTARA) - Trade Minister Muhammad Lutfi has urged Indonesia’s halal industry and e-commerce sector to get involved in the newly launched Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA).

"We want to build a strong collaborative halal industry between Indonesia and the UAE," he stated at the launch ceremony for negotiations on Indonesia-UAE CEPA here on Thursday.

He said he also expects the cooperation to not only be directed at the markets of the two countries, but also to markets of other countries.

In addition, the two countries are among the leading countries in the global halal industry, thus it will be one of the main priorities in the agreement, the minister noted.

Moreover, according to the State of Global Islamic Economic 2020-2021 report, the global halal market is estimated to grow to $2.4 trillion by 2024, with a five-year cumulative annual growth rate of 3.1 percent, Lutfi said.

Furthermore, there will be a possibility to encourage the e-commerce sector in the IUAE-CEPA, he added. He also said that currently, digital trading is at the forefront of the trade sector.

Although there has not been any international consensus on the regulation of e-commerce, it is still necessary to encourage the creation of a conducive business environment for the advancement of the sector, Lutfi said.

Related news: Indonesia-UAE open negotiations on comprehensive trade deal

E-commerce is also expected to encourage goods and services trade, which can open up opportunities for small and medium enterprises to expand their market to foreign countries, he added.

"We have simplified 79 laws by implementing the Job Creation Law, which comprises 11 clusters -- one of them concerns the improvement of the investment ecosystem and business activities in various sectors," he said.

Thus, the agreement will be the basis for investors to be a part of Indonesia's economic transformation, he has added.

Meanwhile, Director General of International Trade Negotiation at the Trade Ministry Djatmiko Bris Witjaksono said that the implementation of the IUAE-CEPA could provide many benefits.

"It is expected that we can increase our exports to reduce or even eliminate the trade deficit through the implementation of the agreement," he added.

Related news: Indonesia's halal industry gains momentum amid pandemic

Translator: Sella Gareta, Uyu Liman
Editor: Rahmad Nasution
Copyright © ANTARA 2021