Jakarta (ANTARA) - The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA- CEPA) took effect on Sunday (July 5), Indonesia's Trade Minister, Agus Suparmanto, noted in a statement here on Monday.
Under the agreement, virtually all Indonesian exports to Australia will face zero tariffs.
"The hard work and efforts put in by the two governments during the process of negotiation and ratification have paid off. Business operators and stakeholders in Indonesia can now benefit from the IA-CEPA," Suparmanto remarked.
The government has issued three regulations pertaining to the implementation of the agreement: Trade Minister’s Regulation No. 63 of 2020 on the certificate of origin and its issuance under the IA-CEPA; Finance Minister’s Regulation No. 81 of 2020 on import duty under the IA-CEPA; and Finance Minister’s Regulation No. 82 of 2020 on the mechanism of import duty imposition under the agreement.
Indonesian products whose exports can be potentially increased comprise automotive, wood and its products, fisheries, textile and textile products, footwear, and communication and electronic devices.
"Trade tariffs on all Indonesian products exported to Australia will be eliminated. This tariff preference under the IA-CEPA should be utilized optimally by Indonesian businesspersons to boost Indonesia's exports," the minister affirmed.
On the other hand, with the imposition of zero import duties, industries in Indonesia can obtain raw materials at competitive pricing.
"The IA-CEPA is a comprehensive agreement that covers not only the trade of goods but also services, investment, and economic cooperation. The comprehensive coverage of IA-CEPA will encourage Indonesia and Australia to become true partners in creating a global supply network," the trade minister stated.
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