“But it`s a simulation base that`s actually still very basic, which means conservative, and if for example the best effort can give, maybe even more than 0.05%,” Fithra said by phone (16/11). “Because Indonesia and Japan, Indonesia and Korea already have trade agreements, tariffs on products from Indonesia to Korea and Japan 0. The definition of MELANSIR on the official website of the Ministry of Commerce of the Republic of Indonesia Trade Agreement (FTA) is an agreement between two or more countries for the creation of a free trade area. In the meantime, trade diversion is the transition of imports from one country to another. Trade diversion is generally done because, from an economic point of view, the transition is seen as more efficient or cost-effective. What is a free trade agreement? Among the benefits of the FTA BENEFITS that can be derived from the free trade agreement are the emergence of the creation and diversion of trade. The creation of businesses is the creation of commercial transactions between the members of the ESTV, which have never taken place before, because of the incentives arising from the establishment of a free trade agreement. It turns out that many trade agreements are concluded and ratified. This means more export opportunities that can be exploited in the near future by SME friends.
Some bilateral partnerships that are just waiting for the ratification process are with Australia, EFTA (European Free Trade Association), Mozambique and Korea. In this case, it is also important that we prepare for the ASEAN-Hong Kong Free Trade Agreement to be signed and to wait to be ratified. Then we`ll cover everyone. The belaïd was released as part of the ratification of the Asean-Hong Kong Free Trade Agreement, in accordance with Presidential Regulation 34/2020. This agreement also complements the list of free trade agreements owned by the Indonesian government. The free trade agreement aims to broadly liberalize trade in goods, but also to liberalize trade in services and investment. With AHKFTA, Indonesia can take the opportunity to increase its exports to Hong Kong, benefit from cooperation in engineering and the economy, and increase the capacity of SMEs. However, the economist at LPEM FEB Universitas Indonesia, Teuku Riefky, warned Indonesia that it was cautious in reducing the implementation of the agreement, because if it is not properly implemented, the end of Indonesia will become a market due to the loss of competitiveness.
The European Union (EU) is an association of 27 European countries, making it a large market. The advanced economic conditions of its member countries, such as Germany, the Netherlands and France, make the European Union the largest potential market for Indonesian exports. In 2016, the European Union was Indonesia`s third largest export destination for non-oil and gas products. Indonesia continues to negotiate new trade agreements with other countries.