Trade Ministry Pushes for More Export to UAE After CEPA Signing

TheIndonesia.co - Indonesian Deputy Minister of Trade Jerry Sambuaga has urged Indonesian companies and business owners to increase export to the United Arab Emirates after the two countries signed a Comprehensive Economic Partnership Agreement (CEPA) earlier this month.

Sambuaga said businesses in Indonesia can benefit from the agreement as it creates opportunities for economic gain and enhanced economic ties between the countries.

“With a more comprehensive scope and higher liberalization, the IUAE-CEPA presents opportunities for economic, trade, and investment growth of both countries,” Sambuaga said on Thursday, July 28, as reported by Antara.

The agreement, signed on July 1, is expected to be implemented starting in January next year.

It becomes a foundation for bilateral cooperation in different sectors, including goods, services, investment, Islamic economics, and small and medium enterprises (SMEs).

Among some of the points regulated in the agreement is trade in goods in which the UAE agreed to gradually eliminate and reduce tariffs on imports.

Meanwhile, on service, the UAE is also committed to open a number of subsectors through foreign equity participation (FEP) of up to 75 percent in engineering, integrated engineering, and urban planning – as well as FEP of up to 67 percent in construction and health.

“The IUAE-CEPA offers many benefits, such as improving Indonesia’s macroeconomic performance, expanding market and access for export, and creating a conducive business climate that will encourage investment and Indonesia’s participation in global supply chain,” Sambuaga said.