Jakarta: Industry Minister Airlangga Hartarto is confident that the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) can help boost manufacturing exports.
"It will enhance mutually benficial economic cooperation between the two neighboring countries," the Golkar Party chairman said in a written statement received by Medcom.id.
Australia and Indonesia signed the landmark trade deal in Jakarta on Monday morning. The two countries wrapped up the long-awaited economic agreement after some nine years of negotiations.
The agreement document was signed by Indonesian Trade Minister Enggartiasto Lukita and his Australian counterpart Simon Birmingham. The signing ceremony was witnessed by Vice President Jusuf Kalla.
"We want to boost textile, clothing and footwear exports. Furnitures, tires, chemicals, foods and beverages, textiles and electronics are our major exports to Australia," Airlangga said.
In 2018, trade between Indonesia and Australia stood at US$8.6 billion. In addition to that, the value Australian investments in Indonesia stood at US$597 million last year.
IA-CEPA is aimed to create new trade and investment opportunities for Australian and Indonesian businesses. It is expected to increase prosperity in both countries.
With a population of 270 million and high levels of economic growth, Indonesia is on track to become one of the world’s largest economies.
"Australia has closed its automative industry. It is an opportunity for our automotive industry," Airlangga noted.
According to the Indonesian Automotive Industry Association (Gaikindo), the country's completely built up (CBU) exports reached 264,553 units in 2018. In the meantime, the country's completely knocked down (CKD) exports reached 82 thousand units last year.
Indonesia recorded a trade deficit of US$1.16 billion in January 2019. It increased by US$0.13 billion compared to the previous month.
Indonesia's export value reached US$13.87 billion last month. It declined by 3.24 percent compared to the previous month.
The country's import value reached US$ 15.03 billion last month. It declined by 2.19 percent compared to the previous month.
In the meantime, Indonesian economy grew by 5.17 percent in 2018. It was Indonesia's highest annual growth in five years.
Indonesian economy grew by 5.18 percent in the fourth quarter of 2018. The growth was slightly stronger than earlier expectations.