Illustrative image (Photo: China Daily) Jakarta (VNA) - Indonesia’s parliament on August 30 passeda law cementing the country’s membership of the Regional Comprehensive EconomicPartnership (RCEP), making it the latestSoutheast Asian nation to join the world’s biggest trade bloc.
The same day, lawmakersalso ratified a bilateral trade pact with the Republic of Korea (RoK), hopingto attract investment to develop the electric vehicle and batteries industry inthe Southeast Asian country.
Indonesian Trade Minister Zulkifli Hasan saidthe RCEP would boost trade, direct investment andincrease the country’s GDP growth by 0.07 percentage point.
The RCEP is a free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and its five FTA partners (Australia, China, Japan, New Zealand and Republic of Korea). It covers nearly a third of the world’s populationand about 30% of its gross domestic product.
The deal was signed by leaders of the 15 member countries in November 2020, and entered into force onJanuary 1 this year.
Meanwhile, under the bilateral agreement, Indonesia andthe RoK will eliminate more than 92% and 95% of tariff lines, respectively.Indonesia will give preferential tariffs to support Korean investment in areasranging from automobiles to apparel
Korean companies such as Hyundai Motor Group and LG Energy Solution arecurrently among top investors in the electric vehicle and battery industry inIndonesia./.
