JAKARTA, HOLOPIS.COM – Indonesia is targeting up to US$15.39 billion in potential additional exports through the implementation of three international trade agreements: the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA), the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA), and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA).
Impact assessments of the trade agreements project that I-EU CEPA could increase Indonesian exports by up to US$10.9 billion. Meanwhile, I-CA CEPA is estimated to unlock an additional US$1.6 billion in export potential, while I-EAEU FTA could generate between US$2.2 billion and US$2.89 billion.
Combined, the three agreements could create export opportunities worth approximately US$14.7 billion to US$15.39 billion. However, these figures represent projected potential rather than export revenue already realized.
The Coordinating Ministry for Economic Affairs is now encouraging businesses to make the most of these trade agreements, ensuring they deliver more than tariff reductions and help Indonesian exporters expand their reach in international markets.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the government wants to ensure that broader market access translates into greater utilization of the agreements by domestic businesses.
“Several trade agreements offer opportunities to expand markets through tariff reductions or eliminations, greater certainty of market access, and new trade opportunities for products that previously faced relatively high tariffs,” Airlangga said, reported by Holopis.com, Wednesday (14/10).
The government has identified a range of leading commodities with potential to increase their market penetration in partner countries. The assessment uses Export Potential Analysis to identify the gap between current export values and the additional exports that could still be achieved.
This difference is known as the export gap. A larger untapped opportunity means greater room for exporters to increase sales, provided they have sufficient production capacity, competitiveness, and market demand.
In the European Union, European Free Trade Association (EFTA) and United Kingdom markets, Indonesian export opportunities include palm oil and its derivatives, motor vehicles, coffee, cocoa, rubber and rubber products, iron and steel, processed wood, and fishery products.
These commodities are among the government’s export development priorities because they could benefit from improved market access and more favorable tariff arrangements.
Meanwhile, the Canadian market offers opportunities for minerals and metals, chemicals, vehicles, wood and rubber products, as well as machinery and electrical equipment.
Through I-CA CEPA, the government also sees potential to expand exports of food and beverages, seafood, footwear, processed wood products, electronics, automotive products, and handicrafts.
In the Eurasian Economic Union (EAEU), Indonesian export opportunities include chemical products, plant-based products, vehicles, minerals and metals, as well as wood, paper, rubber, and plastic products.
