Should the IK-CEPA be ratified, the volume of trade between both countries is projected to increase by 5-10 percent at the start and even increase to $20 billion.
In 2019, bilateral trade totaled $15.65 billion, comprising of $7.23 billion in exports and $8.42 billion in imports, and decreased this year to $10.10 billion.
The East Asian nation was Indonesia’s 8th largest export destination and 6th biggest import partner last year.
2. Indonesia Set to File Lawsuit against EU for Policy Inimical to Palm Oil
The Head of the Agro Products Sub-directorate, Directorate of Trade Defense at Indonesia’s Ministry of Trade, Donny Tamtama explained that the ministry is actively preparing the lawsuit against the EU together with key stakeholders and a legal team.
The aim is for the lawsuit to be submitted to the WTO by next year.
The EU is a key market for Indonesian palm oil. Statistically, 12 percent of Indonesia’s palm oil exports are shipped out to the European Union.
Between January-October 2020, the number has been on a steady decline.
In terms of average trade, Indonesia’s exports to the European bloc dropped by 2.41 percent while the average export volume also decreased 0.56 percent.