The Ministry of Trade (Kemendag) assesses that the use of Free Trade Agreements (FTA) with other countries is the key to recovering foreign trade performance.
Head of the Trade Assessment and Development Agency (BPPP) of the Ministry of Trade, Kasan, assessed the importance of utilizing trade cooperation agreements with other countries to support national economic recovery. A number of trade agreements are expected to be a stimulus for trade recovery and also increase investment flows amid the Covid-19 pandemic. "The President of the Republic of Indonesia gave directions to carry out economic transformation and accelerate economic recovery through investment and trade policy reforms," as quoted in the Kasan report, Sunday (4/9).
Kasan said the collaboration of all stakeholders has also supported the implementation and utilization of Indonesia's FTA is one of the important keys to support the recovery of Indonesia's foreign trade performance which was affected by the Covid-19 pandemic, "explained Kasan. Export, import and investment activities, Kasan continued, are important components of Indonesia's economic growth during the Covid-19 pandemic.
In the midst of a decline in domestic consumption, exports and imports actually recorded quite significant growth in the second quarter of 2021, which were 31.78% yoy and 31.22% yoy, respectively. "Therefore, the implementation and utilization of the trade cooperation agreements that Indonesia already has need to be encouraged, so that current export growth does not only depend on the increase in commodity prices," Kasan explained.
