Technical Assistance I
Indonesia is setting its sights on harnessing the transformative power of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) to drive sustainable economic growth, boost competitiveness, and spur innovation across a multitude of industries. The key to unlocking their potential, however, lies in their maximal usage by the country's businesses, particularly its micro, small, and medium enterprises (MSMEs).
In a bid to glean valuable insights into the successful implementation of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs), six officials from the Ministry of Trade, with the support of ARISE+ Indonesia, embarked on a study visit to Singapore, a country known for its effective use and promotion of FTAs and CEPAs. Singapore's success in capitalising on 27 trade agreements that covers more than 86% of global GDP is partly due to its robust outreach strategies, which have fostered a high level of awareness and understanding among its business community.
This mission's core objective lies in Indonesia's steadfast efforts to fully leverage FTAs/CEPAs, especially with the Indonesia-EU CEPA on the horizon. The study mission aimed to explore effective outreach and communication strategies for maximising the potential of these agreements and enabling the private sector to reap the full spectrum of benefits.
Led by Ari Satria, the Secretary General of the Directorate General of International Trade Negotiation (DG ITN), Ministry of Trade, the Indonesian delegation met with the Directorate of International Trade Cluster - Ministry of Trade & Industry (MTI), Enterprise Singapore (ESG) -an agency under MTI, Singapore Business Federation (SBF) and Indonesian Ambassador to Singapore, during the mission from 4-7 April 2023.
Key takeaways from the visit underscored that optimal usage of trade agreements necessitates a harmonised effort from stakeholders across industries. Coupled with an effective outreach and communication strategy, a regular review of existing trade agreements is crucial to ensure their relevance in the current market conditions.
Following the completion of the study mission, the Secretariat of the DG ITN is set to relay their findings to the Economics and Business Research and Development Agency, Faculty of Economics and Business, University of Gadjah Mada. These insights will serve as critical inputs and recommendations for the feasibility study of establishing an FTA Support Center. The Secretariat of the DGITN is preparing to set up an FTA Support Center, which is expected to provide great benefits for the implementation and utilisation of Indonesia's FTAs based on the results of this study.
Mr Satria expressed his gratitude to ARISE+ Indonesia for facilitating the study mission. "The study mission has provided valuable insights that can be considered for implementation," said Mr Satria.
He further expressed his hope that ARISE+ Indonesia will facilitate the follow-up of the results of the study mission. This includes the creation of materials such as books, infographics, and specific guidelines related to FTA/CEPA, as well as other activities foreseen in 2023-2024.
