Indonesia Urged to Speedup Cepa Agreement

Indonesia Urged to Speedup Cepa Agreement

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The Vice Chairman of the Indonesian Chamber of Commerce and Industry, Shinta W Kamdani, said that some African countries are on the rise within the textile sector and becoming a threat to local exports to the European Union. Bangladesh also continues to remain a notable competitor for this lucrative export market.

“We will be increasingly unrivalled with Africa and Bangladesh if trade agreements with the EU are not resolved soon,” Shinta said. Competition is inevitable unless if the RI does not immediately complete the trade agreement between Indonesia and the European Union Comprehensive Economic Partnership Agreement (Cepa). The government’s targeted deadline to seal this is only be the end of 2019.

 By the end of 2017, the negotiations only entering its second round. The preliminary negotiation took place in May 2017 and a second meeting in October 2017. While no further negotiations have been undertaken for 2018. Indonesia is also falling behind with Vietnam which already has a Cepa agreement with the European Union. As a result, domestic exports, especially for shoes and textile, have been rivalled due to the difference in price when entering the European market.