Jakarta: The Trade Ministry is confident that the newly-signed Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) can boost trade relations between the two countries.
"Trade between the two countries is expected to grow by 65 percent from USD158.5 million in 2017 to 262.1 millio in the fifth year of its implementation," Trade Ministry's Director of Bilateral Negotiations Ni Made Ayu Marthini said here on Monday.
"Chile is one of the most open economies in the world with around 29 trade agreements," she explained.
Chile is Indonesia's third larget trade partner in South America. It is also one of member countris of the Asia-Pacific Economic Cooperation (APEC) forum.
Based on data from the Central Statistics Agency (BPS), Indonesia recorded a trade surplus of USD196 million in June 2019. However, cumulatively, Indonesia recorded a trade deficit of USD1.9 billion in the first semester of 2019.
Overall, Indonesia's exports reached USD80.32 billion in the first semester of 2019. The number was down by 8.75 percent compared to the same period last year.
According to Bank Indonesia (BI), private consumption remains solid, backed by maintained consumer confidence. Furthermore, building investment continues to expand at a stable pace.
In Indonesia, the export contraction has impeded imports and undermined nonbuilding investment. Moving forward, efforts to stimulate domestic demand, including investment, are required in order to mitigate the adverse impact of global economic moderation.