The RCEP Agreement enters into force in Indonesia

The Comprehensive Regional Economic Association Agreement (RCEP) entered into force for Indonesia on January 2. The preferential tariffs of the agreement can now be used by the private sector that exports or imports to Indonesia.

In addition, the private sector can take advantage of simplified rules of origin and trade facilitation in their business activities related to Indonesia.

In a statement issued by the Indonesian Ministry of Commerce, Commerce Minister Zulkifli Hasan said that the RCEP Agreement is expected to increase competitiveness and strengthen the global production network, promote the regional supply chain through better market access for exports of goods and services, reduce or eliminate trade barriers, and improve technology transfer.

“The entry into force of the RCEP Agreement on January 2, 2023 is timely to mark the start of Indonesia’s ASEAN Chairmanship in 2023. Indonesia has been the driving force of RCEP since the conceptualization phase, and we hope that they can achieving further milestones, such as the establishment of the RCEP Support Unit, during Indonesia’s ASEAN Chairmanship this year,” said Satvinder Singh, ASEAN Economic Community Assistant Secretary General.

Philippines affirms importance of international cooperation in ASEAN forum

Indonesia is the largest economy in ASEAN and the fifth largest among the RCEP parties. Its economy grew by 3.7% in 2021 to reach $1.186 trillion, representing 4% of the combined GDP of the RCEP economies. The World Bank forecasts that the Indonesian economy will grow by 5.2% in 2022 and 4.8% in 2023.

The entry into force of the RCEP Agreement for Indonesia brings the full implementation of the RCEP Agreement one step closer to making ASEAN the hub of the region’s production networks.

Indonesia has been the driving force of the RCEP since the conceptualization phase

On November 15, 2020, 15 countries, including the 10 ASEAN member states, Australia, China, Japan, Korea, and New Zealand signed the RCEP Agreement.

Previously, the RCEP Agreement entered into force on January 1, 2022 for Brunei Darussalam, Cambodia, Laos, Singapore, Thailand, Vietnam, Australia, China, Japan, and New Zealand; February 1, 2022 for Korea; and on March 18, 2022 for Malaysia.

The entry The RCEP Agreement enters into force in Indonesia was first published on Asia News – ReportAsia.

Source link