Summary
South Korea plans to make Indonesia a production base in ASEAN as the two countries eliminated most tariffs, including for auto parts and steel. This plan is underpinned by the Indonesia-Korea Comprehensive Partnership Agreement (IK-CEPA) enacted earlier this year. The IK-CEPA removes 95.5 percent of South Korea’s tariffs. Indonesia has agreed to remove 92 percent of tariff items.
Oh Hyun, Deputy Director of Free Trade Agreements at the South Korean Ministry of Trade, said that both countries are expected to enjoy wider market access with the agreement.
“South Korea is interested in making Indonesia a new production base in ASEAN and a production hub to enter regional and world markets. The elimination of tariffs on steel products, auto parts, and petrochemicals through CEPA is a vital tool,” Oh Hyun said, as quoted by Jakarta Globe.
