RCEP was signed, this is the benefit that can be obtained by Indonesia
President Joko Widodo and Minister of Trade Agus Suparmanto during the signing of the Regional Comprehensive Economic Partnership (RCEP) agreement on the sidelines of the ASEAN Summit from the Bogor Palace, Sunday (15/11/2020).
Reporter: Lidya Yuniartha | Editor: Noverius Laoli
KONTAN.CO.ID – JAKARTA. The Regional Comprehensive Economic Cooperation Agreement (RCEP) was officially signed, today Sunday (15/11).
Director General of International Trade Negotiations at the Ministry of Trade (Kemendag) Iman Pambagyo also said, based on various studies, RCEP has the potential to provide various benefits to Indonesia.
These various benefits start from increasing gross domestic product (GDP), encouraging exports, investment and others.
For example, based on a study by the Fiscal Policy Agency (BKF) in 2019, it was stated that Indonesia could increase GDP by 0.05% during the 2021-2032 period if it participated in RCEP.
Also Read: Asia will have the largest trading bloc in the world, China will benefit the most?
“On the other hand, if you don’t join RCEP, Indonesia’s GDP will decline by 0.07% during the same period, 2021-2032,” said Iman in a press conference on Sunday (15/11).
Another study conducted by the Ministry of Trade in 2016 also showed that this RCEP would provide a welfare gain for Indonesia of around US $ 1.52 billion.
This welfare gain is the surplus that consumers and producers get from a transaction. If from the consumer perspective, welfare gin is obtained when the price that consumers can pay is greater than the factual price in the market, while from the perspective of producers, welfare is obtained if the price they are able to offer to the market is lower than the factual price in the market.
The study by the Ministry of Trade also shows that Indonesia has the potential to increase the trade balance deficit by US $ 491.46 million. Even so. Faith said that the potential deficit can be balanced by maximizing the surplus and supply chain from the backward linkage and forward linkage aspects.
Also Read: Asia to form the world’s biggest trade bloc, a China-backed group excluding US
DONATION, Get Free Vouchers!
As an expression of gratitude for your attention, there are free vouchers worth donations that can be used to shop at the KONTAN Store.
