The Ministry of Trade forecasts the export value of Indonesian products to Hong Kong to reach USD 3.9 billion or IDR 64.1 trillion (exchange rate of IDR 16,437 per USD) by 2045, with particular potential in the metal products, manufacturing, fisheries, apparel, chemical and textile sectors. This can be realised if the First Protocol to Amend the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) is ratified by Indonesia. The Ministry of Trade has analysed the protocol and predicts that trade costs will be reduced by 2.7%. Meanwhile, Indonesia's imports are projected to reach USD 3.26 billion. Furthermore, the ratification of AHKFTA is expected to boost Indonesia's GDP by USD 11.29 million, increase gross domestic product by 0.0045%, and increase investment by 0.0019%. Furthermore, the AHKFTA will create significant opportunities for the increased export of high-quality Indonesian products to Hong Kong, China, including shrimp, electronic components such as integrated circuits, cultured pearls, diverse food mix products and cotton clothing.
Moreover, Minister of Trade Budi Santoso elaborated that the AHKFTA encompasses updates to product-specific rules of a technical nature, omitting any inclusion of tariff commitments on trade in goods or novel elements with the potential to influence people's lives and state finances. The AHKFTA also has the advantage of increasing Indonesia's trade volume and strengthening economic integration in the ASEAN region and Hong Kong, China, by updating product-specific rules and HS codes from 2012 to 2022. This can improve trade facilitation and reduce trade barriers, strengthening economic relations and promoting inclusive and sustainable growth. The Ministry of Trade hopes that the Indonesian House of Representatives will support the ratification of the AHKFTA through a Presidential Regulation. Therefore, Indonesian business actors can immediately benefit from this protocol to support economic development.
