Economic Indicators

Indonesia parliament approves membership of China-backed regional trade deal

2022.08.30 09:18

Indonesia parliament approves membership of China-backed regional trade deal
A tug boat is seen docking at Tanjung Priok Port in Jakarta, Indonesia, January 11, 2021. Picture taken January 11, 2021. REUTERS/Willy Kurniawan

JAKARTA (Reuters) – Indonesia’s parliament on Tuesday passed a law cementing the country’s membership of the China-backed Regional Comprehensive Economic Partnership (RCEP), making it the latest Southeast Asian nation to join the world’s biggest trade bloc.

Lawmakers also ratified a bilateral trade pact with South Korea, hoping to attract investment to develop the electric vehicle and batteries industry in the Southeast Asian country.

Indonesian Trade Minister Zulkifli Hasan said the RCEP would boost trade, direct investment and increase the country’s GDP growth by 0.07 percentage point.

“We describe this agreement as a toll way to enter the global market, and it is time for Indonesia to storm the international markets,” he told lawmakers.

The RCEP, which is seen as an alternative to the U.S.-led Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), covers nearly a third of the world’s population and about 30% of its gross domestic product. It was initially agreed by leaders of 15 Asia-Pacific countries in November 2020.

The pact, which does not include the United States, entered into force on Jan. 1 this year after seven nations in Southeast Asia, and Australia, China, Japan, and New Zealand ratified the pact last year.

Under the agreement with South Korea, Jakarta and Seoul will eliminate more than 92% and 95% of tariff lines respectively. Indonesia will give preferential tariffs to support Korean investment in areas ranging from automobiles to apparel, Indonesia’s Trade Ministry said in a statement following the deal signing in 2020.

South Korean companies such as Hyundai Motor Group and LG Energy Solution are currently among top investors in the electric vehicle and battery industry in Indonesia as it looks to take advantage of its rich nickel reserves.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 69,612.65 2.63%
ethereum
Ethereum (ETH) $ 2,434.86 1.46%
tether
Tether (USDT) $ 1.00 0.12%
bnb
BNB (BNB) $ 565.72 2.62%
solana
Solana (SOL) $ 167.23 6.08%
usd-coin
USDC (USDC) $ 1.00 0.09%
xrp
XRP (XRP) $ 0.514333 2.30%
dogecoin
Dogecoin (DOGE) $ 0.170971 8.54%
staked-ether
Lido Staked Ether (STETH) $ 2,432.51 1.41%
tron
TRON (TRX) $ 0.160415 1.55%
cardano
Cardano (ADA) $ 0.334999 2.71%
the-open-network
Toncoin (TON) $ 4.68 0.33%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 6.35%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,872.47 0.57%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 69,541.63 2.71%
avalanche-2
Avalanche (AVAX) $ 24.02 5.39%
weth
WETH (WETH) $ 2,434.64 1.47%
chainlink
Chainlink (LINK) $ 10.85 5.80%
bitcoin-cash
Bitcoin Cash (BCH) $ 344.15 4.84%
sui
Sui (SUI) $ 1.98 7.23%
usds
USDS (USDS) $ 0.999017 0.18%
polkadot
Polkadot (DOT) $ 3.87 3.39%
leo-token
LEO Token (LEO) $ 5.97 1.62%
litecoin
Litecoin (LTC) $ 66.19 0.95%
near
NEAR Protocol (NEAR) $ 3.82 6.21%
aptos
Aptos (APT) $ 8.50 6.29%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,560.54 1.45%
uniswap
Uniswap (UNI) $ 7.16 6.26%
pepe
Pepe (PEPE) $ 0.000009 8.05%
internet-computer
Internet Computer (ICP) $ 7.39 5.60%
bittensor
Bittensor (TAO) $ 455.06 9.18%
dai
Dai (DAI) $ 1.00 0.03%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.25 11.15%
monero
Monero (XMR) $ 158.95 1.42%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.05%
kaspa
Kaspa (KAS) $ 0.111524 7.28%
stellar
Stellar (XLM) $ 0.093674 2.90%
whitebit
WhiteBIT Coin (WBT) $ 19.04 0.81%
ethereum-classic
Ethereum Classic (ETC) $ 18.27 3.68%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.49%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.304006 4.58%
blockstack
Stacks (STX) $ 1.53 4.93%
okb
OKB (OKB) $ 37.89 2.13%
dogwifcoin
dogwifhat (WIF) $ 2.10 8.94%
aave
Aave (AAVE) $ 136.63 6.73%
filecoin
Filecoin (FIL) $ 3.40 3.98%
crypto-com-chain
Cronos (CRO) $ 0.07215 2.60%
arbitrum
Arbitrum (ARB) $ 0.491138 3.99%
mantle
Mantle (MNT) $ 0.562134 1.69%
immutable-x
Immutable (IMX) $ 1.09 3.51%