Jakarta (ANTARA) - Indonesia and Chile on Monday signed a trade in service agreement (TIS) under the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA).

The agreement was signed by Indonesian Trade Minister Zulkifli Hasan and Chilean Deputy Minister of International Economic Relations, José Miguel Ahumada, here.

“Today, we sign the IC-CEPA for service with Chile. This country has high potential to market our products and services to Latin America because Chile is a developed country in Latin America," Hasan said.

Chile has quality human resources with the strongest economy in Latin America.

Indonesia, he said, has a partnership with Chile which has succeeded in increasing the trade between the two countries to US$1 billion.

"I think, in the next two or three years, we should be able to exceed US$1 billion (in bilateral trade). If we make Chile a hub for expansion, I think it will be good," the minister added.

According to Hasan, the agreement is a part of Indonesia's efforts to achieve its mission of becoming a developed country by 2045, including through the diversification of export destination markets.

"We can become a developed country if we can expand our market; we can dominate the world market," Hasan observed.

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With the traditional markets for Indonesian exports experiencing a downturn, demand for the country's products has also declined.

"Therefore, if we want to pursue 7 percent growth, we have no choice. In fact, we must develop our market, especially to Latin America, Africa, the Middle East, Central Asia, Eastern Europe. and South Asia," he stressed.

Meanwhile, Ahumada said that the agreement would bring the two countries closer and benefit them both.

“So, we are pleased that today we signed the protocol through these negotiations. Our trade and economic relations will be placed at a new level of maturity and priority, multiplying synergies to develop and increase opportunities and business," he expounded.

In addition, the protocol would serve as an export and import platform for the flow of services to both countries, he informed.

"In this context, Indonesia will be able to take advantage of new trade opportunities. And on the other hand, we will benefit from Indonesia, the country with the largest economy in Southeast Asia," he added.

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Translator: Sella P Gareta, Sri Haryati
Editor: Suharto
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