Ministry of Industry Boosts Investment Through RCEP Cooperation

Jakarta, INTI – The Indonesian Ministry of Industry (Kemenperin) is steadfast in its commitment to enhance investment in the industrial sector. In support of this endeavor, Kemenperin is strengthening economic cooperation, particularly within the framework of the Regional Comprehensive Economic Partnership (RCEP).

RCEP is a free trade agreement that includes ten ASEAN member countries—Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—along with five partner countries: China, Japan, South Korea, Australia, and New Zealand. The agreement aims to bolster regional supply chains, advance small and medium-sized enterprises (SMEs), and foster economic cooperation and trade among RCEP member states.

The RCEP initiative was proposed by Indonesia during its ASEAN chairmanship in 2011, intending to integrate ASEAN’s partnerships with its existing partners through the ASEAN-China Free Trade Agreement (ACFTA), ASEAN-Korea Free Trade Agreement (AKFTA), ASEAN-Japan Comprehensive Economic Partnership (AJCEP), and ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).

During a meeting with Mr. Xiu Ningning, Chairman of the RCEP Industry Cooperation Committee (RICC) of China, and a delegation of Chinese business leaders on Tuesday, May 28, Kemenperin expressed a desire to enhance trade and investment between Indonesia and China. "Indonesia and China have collaborated in various regional forums. China is a strategic partner for Indonesia as both a trading partner and the second-largest investor," said Taufiek Bawazier, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries, representing the Minister of Industry at the meeting.

With a population of 280 million, Indonesia presents a significant market for business opportunities. Additionally, Indonesia's abundant raw materials require technological advancements to add value to these resources, which is crucial for industrial development in Indonesia," explained Taufiek.

During the meeting, the Indonesian delegation highlighted market opportunities in sectors such as food and beverages. Chairman of the Indonesian Food and Beverage Association (GAPMMI), Adhi S. Lukman, mentioned that the President-elect plans to implement a program for free nutritious meals, necessitating technological support for its realization. "Currently, three major Chinese companies have invested in Indonesia in this sector. This presents an excellent investment opportunity," Adhi noted.

Mr. Xiu Ningning emphasized that many Chinese companies are keen to invest in Indonesia, not only due to Indonesia's large market and positive trade relations with other countries but also because the Indonesian industry still has ample room for growth. China has industrial technology systems that can be applied in Indonesia.

Present at the meeting were Director General of Agro Industry Putu Juli Ardika, Director of Industrial Resource Access and International Promotion Syahroni Ahmad, Director of Upstream Chemical Industry Wiwik Pudjiastuti, and Director of Downstream Chemical and Pharmaceutical Industries Emmy Suryandari.

The Chinese delegation included Song Xibin, Director of Shandong Sinocera Functional Material, Xing Zhicao, Deputy Director of the Northern Region Electronics Design and Research Institute, Zhu Lifeng, Chairman of the China Information Industry Trade Association, and Wang Yumin, Executive Vice Chairman and Secretary-General of the China Building Materials Machinery Association.