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Entrepreneurs don't need SKA to export their products

ILLUSTRATION. Minister of Trade, Agus Suparmanto

Reporter: Yudho Winarto | Editor: Yudho Winarto

KONTAN.CO.ID – JAKARTA. Minister of Trade Agus Suparmanto said the implementation of the Regional Comprehensive Economic Partnership (RCEP) would provide Indonesian businesses with a number of advantages in exporting their products.

“One of the benefits obtained from RCEP is that our entrepreneurs, both large and small, who want to export their products to RCEP countries no longer need to use SKA (certificate of origin) that varies according to the destination country. For the same product, as long as it meets the origin criteria stipulated in RCEP, our businessmen only need to pocket RCEP SKA to export one product to all RCEP countries, “said Agus in his statement, Tuesday (12/1).

He added that if Indonesian business actors used it to the fullest, this benefit would further increase Indonesia’s exports to the world.

Another benefit that the Trade Minister emphasized was spill-over effect. By taking advantage of the free trade agreements that RCEP members have with non-RCEP members, Indonesian products can also take the opportunity to take advantage of preferential schemes to non-RCEP countries.

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“This is an operationalization of the concept of deepening regional value chains in the RCEP area to expand the reach into the global value chain. Indonesia can maximize spill-over effect to help increase Indonesia’s exports to the world by 7.2%, “he said.

Products that can be encouraged to export by utilizing RCEP include plant-based fibers, paper and pulp, rubber and rubber products, several mineral and metal products, gas and electricity services, wood products, and food products including fishery products.

“Various agreements that we have followed, including RCEP, offer opportunities to be used by its members. But the benefits do not come alone, they must be pursued. We can do this only if we have relatively better competitiveness than other treaty participating countries, “said the Trade Minister.

In 2019, Indonesia’s total non-oil and gas exports to the RCEP area represented 56.5% of Indonesia’s total exports to the world, amounting to US $ 84.4 billion. Meanwhile, from the import point of view, RCEP is the source of 65.8% of Indonesia’s total imports from the world, namely US $ 102 billion.

“Therefore, RCEP has the potential to strengthen our trade with fellow member countries and expand Indonesia’s reach in the global value chain,” Agus concluded.

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