Tuesday, 15 December 2020 09:14

RI-European Union Cooperation Potential to Increase Exports by 18%

The government continues to explore international economic cooperation to boost exports and investment. After reaching an agreement with Australia through the Indonesia-Australia Comprehensive Economic Partnership Agreement or IA-CEPA, a similar framework of cooperation is now being explored with the European Union. Negotiations on the Indonesia European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) are currently underway. If achieved, this cooperation framework is expected to accelerate the recovery of the country's economy which was contracted due to Covid-19. "A number of studies have said that the CEPA will increase the welfare, GDP (Gross Domestic Product) and trade of both parties," said Ambassador of the European Union to Indonesia Vincent Piket during the I-EU CEPA Roadshow to Maluku, Monday (14/12).

According to him, a number of studies stated that between 2030-2032, I-EU CEPA could increase growth for Indonesia by € 5 billion or the equivalent of IDR 85.91 trillion (exchange rate of IDR 17,182 per euro) from year to year. Not only that, this cooperation can increase Indonesia's exports by up to 18%. It is estimated that this will restructure and strengthen the Indonesian economy. "We view the I-EU CEPA agreement as an idea that benefits all parties," he said. In addition, I-EU CEPA can be a means to create jobs with better wages. Then, this partnership can encourage diversification of the regional economy.

Currently, the European Union is looking for investment and business opportunities in Indonesia, particularly Maluku. Vincent assessed that Maluku has opportunities in marine and fishery products as well as spices. In addition, there is also potential for a sustainable tourism sector. "This is a major attraction and trade potential with the European Union market," he said. He said the European Union had realized the importance of investing in Indonesia since before the pandemic. Apart from fisheries and spices, the sectors that have attracted investors from the Blue Continent are green energy infrastructure. Vincent said that Indonesia is an important partner in fighting climate change, conserving and expanding biodiversity. Therefore, his party wants to build strong partnerships for the green agenda, such as green project development, city management, and increased low-carbon construction.

Maluku Governor Murad Ismail said the Banda Sea and Seram Sea have fishery potential reaching 1.72 million tons per year. "But the potential that has just been exploited is 568 thousand tons," he said. In addition, Maluku is known as the spice route because it has potential in the form of nutmeg, cloves, coconut, and other plantations. Meanwhile, in the tourism sector, there are marine, natural, cultural and historical potential. He also assessed that there are still opportunities for investors to enter Maluku, such as in the energy sector. Murad noted that only 62% of the people of Maluku have had electricity 24 hours per day. The government also targets that all Maluku people can enjoy electricity for one full day in 2021. Then, he also mentioned that only 55% of villages in Maluku have telecommunications networks. The government is also trying, all rural areas and border areas will get a telecommunications network next year. "We are offering EU investors to read the investment opportunities," he said.

Source: https://katadata.co.id/pingitaria/berita/5fd751b9739fd/kerja-sama-ri-uni-eropa-berpotensi-tingkatkan-ekspor-hingga-18?utm_source=Direct&utm_medium=Homepage&utm_campaign=Indeks%20Pos%2011

 

 

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