The country’s export to Australia still rose 15.69 percent YoY to $920 million in the January-May period, when export to major trade partners was mostly down.
“We are running out of time to save the economy,” said Rosan Roeslani, chairman of the Indonesian Chamber of Commerce and Industry. “The government’s stimulus spending is super slow.”
The Trade Ministry expects a boost in the export of some Indonesian products to Australia, such as textiles, automotive products, electronics, fish products and communication tools, as the trade pact is now in effect.
The trigger for this research was a request from overseas buyers for colourful dried seaweed (purple, green and red), with colour indicating an abundance of the active ingredient.
“Trade tariffs on all Indonesian products exported to Australia will be eliminated. This tariff preference under the IA-CEPA should be utilised optimally by Indonesian business.”
There is little evidence Jokowi sees trade deals as a way to drive liberalising domestic economic reforms at home.
The Indonesian-Australia Comprehensive Economic Partnership Agreement has come into effect, with Australia’s Trade Minister touting its benefits.
The relocation of factories, including South Korea’s LG and Japan’s Panasonic, will bring potential employment for 30,000 workers.
This year is going to be a tough one for trade but amid the chaos and collapsing supply chains an unlikely agreement has broken through.
The slump has forced Blue Bird to rework its capital spending, deciding to postpone the expansion of its electric vehicle fleet until demand recovers.
Local institutions, both private and state-owned, have since racked their brains to meet domestic demand in the face of disrupted global supply chains.
For example, Indonesia is allowing Australian exporters to use an electronic certificate of origin in order to claim free trade agreement benefits for its exported products.