Indonesia and South Korea agreed to signs comprehensive economic partnership agreement (CEPA) soon to helps minimize the economic fallout from the new COVID-19 pandemic - Photo by Trade Minister Office

JAKARTA (TheInsiderStories) – Indonesia and South Korea agreed to signs the much-awaited comprehensive economic partnership agreement (IK-CEPA) soon to minimize the economic fallout from the new COVID-19 pandemic. Last year, both countries has signed a preliminary agreement on the deal.

“The international community must join forces to sustain the global supply chain and to ensure the travel of vital business officials,” said Yoo Myung-hee, South Korea’ trade minister during a videoconference with her counterpart, coordinator minister for economic affairs, Airlangga Hartarto as quoted by Yonhap News.

Earlier, Seoul and Jakarta has a goal to signs the agreement in the first half of 2020. The two resumed their negotiations in 2019 after a hiatus of five years.

Through IK-CEPA, its expecting Indonesia will later get better market access for products industry, fisheries, and agriculture in the South Korean market. On the other hand, the Southeast Asia largest economy will provide market access to industrial raw materials, facilitating South Korean investment in the country.

The negotiations began in 2012, but were briefly stopped in 2014. Then in February 2019, the two countries agreed to continue negotiations and targets Settlement negotiations before the end of 2019.

with the IK-CEPA, total trade value between Indonesia and South Korea could reach US$30 billion in 2022. In 2018, the statistics Agency noted, the value of Indonesia’ trade with South Korea reached US$18.62 billion, the sixth largest export destination and import source for the nation.

Indonesia’ total exports to South Korea were  $9.54 billion and total Indonesian imports from South Korea were $9.08 billion. With this value, Indonesia has a surplus of $460 million. The country’ main export commodities are coal, copper ore, natural rubber, plywood and tin and main import commodities are synthetic rubber, sheet steel products, electronic products, and synthetic filament woven fabrics.

South Korea is striving to sign FTAs with Malaysia and the Philippines at the end of the year when the South Korea – ASEAN summit is slated for November in Busan. If all the negotiations under way are successful, the country will have free trade deals with all the five of its top ASEAN trading partners.

Written by Staff Editor, Email: theinsiderstories@gmail.com