RI Bets on Free Market with Latin America, Here’s the Reason News – 1 hour ago

Tangerang, CNBC Indonesia – Coordinating Minister for Economic Affairs Airlangga Hartarto revealed the threat of difficulty in exporting Indonesian products to Latin American countries, one of which is Mexico. There are several obstacles, including export quotas and high import duties.

“For shoes alone, it is above 20%,” said Airlangga when met at ICE BSD Tangerang, Wednesday (18/10/2023).

Furthermore, Airlangga said, currently the government is looking for ways for Indonesia to enter a wider market in Latin American countries. Among other things, the government is studying the Free Trade Area (FTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Both are considered profitable for Indonesia to establish trade relations with the Latin American market.

“That’s why we have to work with them through the FTA (Free Trade Agreement) or through the CPTPP and then find a better way,” he said.

“Of course that is part of our homework, there are ways we can enter a wider market in Latin American countries,” he added.

Photo: Exchange of dollars (US) and rupiah at Valuta Inti Prima (VIP) Money Changer, Menteng, Jakarta, Wednesday (11/10/2023). (CNBC Indonesia/ Faisal Rahman) Exchange of dollars (US) and rupiah at Valuta Inti Prima (VIP) Money Changer, Menteng, Jakarta, Wednesday (11/10/2023). (CNBC Indonesia/ Faisal Rahman)

Trade relations such as FTA, he continued, also continue to be encouraged by the government, but the opportunity for CPTPP is also being studied, because it will open up many opportunities for Indonesia to enter a wider market.

Apart from that, Airlangga said that the process of formulating an FTA agreement took a long time, which took one to two years to complete.

“The FTA is not one year (completed in one year). It will take 1-2 years before we can access the market,” said Airlangga.

Apart from Latin America, trade problems are also found in African markets. However, for the African market, the problem is more of a payment issue. The government is looking for a solution to this problem.

“One of the biggest markets is in Africa, but terms of trade and terms of payment, payment is an issue. So various patterns are being discussed by the government because these countries need Indonesian products, whether airplanes, trains and others,” he said.

[Gambas:Video CNBC]

(wur)