Indonesia and Chile Launch Investment Negotiations to Strengthen Economic Ties
Jakarta, The Gulf Observer: Indonesia and Chile have initiated negotiations under the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) aimed at expanding investment opportunities in non-traditional markets, particularly in Latin America. This strategic move is expected to bolster economic relations between the two countries.
Indonesian Deputy Trade Minister Jerry Sambuaga highlighted the significance of this investment agreement, noting that it represents a valuable opportunity for Indonesia. “This is very beneficial for us both,” Sambuaga remarked during the signing ceremony at the Trade Ministry office in Jakarta on Thursday. He emphasized that Chile is the first Latin American country to establish a partnership agreement with Indonesia.
According to Sambuaga, the investment between Indonesia and Chile has shown remarkable growth, increasing from 160.7 percent to 280 percent. Significant investments have been made in various sectors, including services, tourism, hotel, and housing.
Data from the Trade Ministry indicates that Indonesia enjoyed a trade surplus of US$139.2 million with Chile in 2023. Indonesia’s exports to Chile totaled US$312.6 million, while imports from Chile amounted to US$173.4 million during the same period. Major exports from Indonesia to Chile include minerals, copper, chemical products, automotive and electronic parts, food, and palm oil.
Sambuaga expressed optimism about further expanding these economic ties through the implementation of IC-CEPA. “We hope for an expansion through the implementation of IC-CEPA and the expansion of CEPA for trade and services investments, especially those based on trade and digitalization,” he stated.
Chile’s Deputy Minister of International Economic Relations, Claudia Sanhueza, echoed Sambuaga’s sentiments, affirming the robust partnership between the two nations. Sanhueza stated, “We have signed trade agreements and are working together on deepening these economic ties in interests as relevant as services and investment. Today, we signed an agreement to start negotiations for the investment chapter.”
The commencement of these negotiations marks a significant step towards enhancing economic collaboration and realizing a more advanced and stronger economic relationship between Indonesia and Chile.
