WNAM REPORT: Indonesia has officially applied to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to boost its export growth.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that his ministry has handed over the application letter to New Zealand as the depositary of the CPTPP.
“Currently, the steps that Indonesia takes, especially completing Indonesia’s OECD accession process, are aimed at driving structural reform in the country and opening markets for Indonesia’s economy,” he noted in a press conference in Jakarta on Wednesday.
Hartarto stated that the step had been reported to President-elect Prabowo Subianto, who welcomed it positively.
The CPTPP is a high-standard trade agreement that facilitates economic cooperation between its member countries, covering all aspects of the economy, including investment and trade in goods and services.
The minister explained that the agreement is a development of the Trans-Pacific Partnership (TPP), which was previously never ratified due to the withdrawal of the United States.
The CPTPP currently comprises 11 countries: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
In addition to Indonesia, seven countries, including China and Costa Rica, have proposed to become CPTPP members.
He noted that the accession process takes time, citing the 2.5-year process the UK’s CPTPP accession process took.
Indonesia’s membership in the CPTPP is expected to open new markets in various countries, and in this case, Hartarto is targeting the Latin American market, such as Mexico and Peru.
He also expressed optimism that the CPTPP membership would increase Indonesia’s export value by up to 10 percent.
“Imports and exports will increase and eventually will increase trade between CPTPP member countries,” he remarked.
The membership is also expected to strengthen Indonesia’s position on the global stage as the first ASEAN country in the G20 to officially become a member of the CPTPP.
