Indonesia's Trade Talks Must Go On amid Pandemic: Trade Ministry

JAKARTA, KOMPAS.com – Not even the coronavirus pandemic has weakened Indonesia's resolve to conclude negotiations for international trade agreements with a number of countries, said the Ministry of Trade.

Some of these trade deals with partner countries are expected to be finalized by the end of 2020, and Indonesia's negotiators are optimistic these completion targets can be met despite the challenges brought on by the global health crisis.

Read also: Make the Most of IA-CEPA, Indonesia's Vice Trade Minister Advises Indonesian Businesses

Vice Trade Minister Jerry Sambuaga acknowledged the delays caused by the coronavirus pandemic on discussions for a number of Indonesia's international trade agreements.

Lockdowns have stood in the way of country visits to discuss the details of the trade agreements.

“For example, we were supposed to visit Belgium or they visit us in Indonesia to negotiate several items of the agreement, but it has been postponed due to lockdown restrictions. Thus, we cannot physically meet,” said Jerry.

This has not, however, stopped Indonesia’s Ministry of Trade to keep the talks going using online platforms.

Read also: Indonesia and Australia Move Ahead with Beef and Livestock Trade

Jerry admitted though that online trade talks take much longer.

But regardless of the longer time needed for negotiations, discussions over Indonesia’s international trade agreements will not be stalled, he added.

Jerry said he hopes that several of Indonesia’s international trade agreements can be finalized on time to benefit the country's trade balance.

“I can confirm that we are trying our best not to delay talks and if it is delayed, it won’t be for too long because all countries are dealing with the coronavirus pandemic,” Jerry said.

Read also: Indonesian Trade Performance Nosedives Post-Ramadhan

There are 12 international trade agreements in the pipeline for Indonesia with some scheduled to be finished by end of this year.

Those agreements are the Indonesia-European Union Comprehensive Economic Partnership (CEPA) and Indonesia-Turkey CEPA.

Moreover, there is also the Indonesia-Tunisia Preferential Trade Agreement (PTA), Indonesia-Bangladesh PTA, and Indonesia-Iran PTA.

The Indonesia-Pakistan Trade in Goods Agreement is expected to be finalized in 2021.

Indonesia’s Ministry of Trade, meanwhile, is reviewing this year the ASEAN Economic Community, ASEAN-India Free Trade Agreement (FTA), and the ASEAN-Australia-New Zealand FTA.

Read also: Indonesian President Jokowi: ASEAN Must be Subject of Global Politics

The Regional Comprehensive Economic Partnership entered its 30th round in May 2020 while the Indonesia-Mauritius PTA had the first rounds of negotiations in August 2019.

The Indonesia-Morocco PTA was in the early stages of negotiations in June 2018.

“Every time Indonesia initiates a trade partnership with other countries, we are never in a disadvantageous position. We always provide a reciprocal relationship that benefits Indonesia,” said Jerry. 

(Writer: Yohana Artha Uly | Editor: Bambang P. Jatmiko) 

Source: https://money.kompas.com/read/2020/07/13/211500526/ada-pandemi-kemendag-pastikan-perjanjian-dagang-tak-ada-yang-tertunda