Indonesia cancelled the implementation of RECP on January 1, 2022 for the following reasons

KONTAN.CO.ID-Jakarta.Indonesia cancelled the implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement on January 1, 2022.Because, until the end of this year, Indonesia has not yet completed the approval process for the agreement.
The Minister of Economic Coordination, Airlangga Hartarto, stated that the discussion on approval has just been completed at the DPR Sixth Committee level.It is hoped that RCEP can be approved at the plenary meeting in the first quarter of 2022.
“The result is that we will not take effect from January 1, 2022. But it will take effect after approval is completed and promulgated by the government,” Airlangga said at a press conference on Friday (31/12).
At the same time, six ASEAN countries have approved RCEP, namely Brunei Darussalam, Cambodia, Laos, Thailand, Singapore and Myanmar.
In addition, five trading partner countries including China, Japan, Australia, New Zealand and South Korea have also approved.With the approval of the six ASEAN countries and five trading partners, the conditions for the implementation of RCEP have been met.
Although Indonesia was late in implementing RCEP, he ensured that Indonesia could still benefit from the trade facilitation in the agreement.Therefore, he hopes to get approval in the first quarter of 2022.
At the same time, RCEP itself is the largest trading area in the world because it is equivalent to 27% of world trade.RCEP also covers 29% of the global gross domestic product (GDP), which is equivalent to 29% of global foreign investment.The agreement also involves about 30% of the world’s population.
RCEP itself will promote national exports, because its members account for 56% of the export market.At the same time, from the perspective of imports, it contributed 65%.
The trade agreement will certainly attract a lot of foreign investment.This is because nearly 72% of foreign investment flowing into Indonesia comes from Singapore, Malaysia, Japan, South Korea and China.

Post time: Jan-05-2022