SEOUL, Oct 19, 2019, Hankyoreh. South Korea and Indonesia have completed their talks on a Comprehensive Economic Partnership Agreement (CEPA), announced the South Korean Ministry of Trade, Industry, and Energy (MOTIE) on Oct. 16. Similar to a free trade agreement (FTA), a CEPA includes specific terms for mutual economic cooperation and investment, reported the Hankyoreh.
With the world’s fourth largest population, an average age of 29, and burgeoning growth rate, Indonesia is set to become one of Southeast Asia’s major markets along with Vietnam.
The CEPA will have South Korea eliminate tariffs on 90.2% of Indonesian imports, with Indonesia eliminating 93% of South Korean imports. Considering the South Korea-ASEAN FTA eliminated a respective 90.2% and 80.1% of tariffs, the CEPA deal with Indonesia marks a significant increase in tariff-free trade.