Advancing Economic Cooperation, Vice President Hopes to Ratify CEPA Indonesia – PEA Completes Soon

Abu Dhabi, wapresri.go.id – Currently, Indonesia and the United Arab Emirates (PEA) are accelerating the ratification process of the Comprehensive Economic Partnership Agreement (CEPA), signed in Abu Dhabi last July 2022. It is aimed to increase economic cooperation between the two countries,

In this regard, Vice President K.H. Ma’ruf Amin hoped that the ratification process by the two countries can be completed before PEA President Mohammed bin Zayed Al Nahyan (MBZ) visits Indonesia to attend the G20 Summit in mid-November 2022.

“When it comes to the details of the results of the ratification have been agreed upon,” said the Vice President at Shatie Palace, Abu Dhabi, Wednesday (02/11/2022 ).

Not only in the economic field, continued the Vice President, he also hopes that cooperation in the education sector will continue to advance, especially regarding the plan to build a School of Future Studies in Indonesia.

“Science (science) that is oriented to the future, we are formulating the collaboration, also about technology,” he said.

If this collaboration can be realized, according to the Vice President, Indonesia will have a very modern school model.

“The point is knowledge about mastering technology, and this is what we need in the future,” he said.

Regarding the CEPA, the Indonesian Ambassador to the PEA Husin Bagis added that the Indonesia-PEA CEPA was the fastest trade agreement agreed upon, which was only nine months because it was directly supervised by the two heads of state.

“The target is that currently, (the value of trade) between the two countries is approximately USD 4 billion; namely, our exports are USD 2 billion, and our imports are also USD 2 billion,” he explained.

According to Husin, President Joko Widodo has also instructed that after the CEPA, the trade value between Indonesia and PEA can increase 3 to 4 times.

“With regards to ratification, the PEA has carried it out. We must press it through the Ministry of Trade before the G-20 Summit. Therefore, we can implement it on January 1 next year,” he hoped.

Husin said that one of the real benefits expected from CEPA ratification is an increase in Indonesia’s export results in the future.

“The easiest example UAE imports gold jewelry from all over the world, reaching 1.5 to 2 billion USD a year, from Indonesia, only around 200 million minimal USD. Why can it reach USD 1.2 billion from Singapore? Why is it small from Indonesia? Because Singapore has long discussed Free Trade Agreement (FTA) with PEA,” he explained.

Therefore, continued Husin, with a CEPA which allows for FTAs, we believe that Indonesia’s exports to PEA will increase.

“Not only gold, of course; there is palm oil, tires, and others that will also apply the 0 percent FTA rule,” he said. (SM/LHS-BPMI Setwapres)