RCEP will bring positive benefits to the region
ILLUSTRATION. President Joko Widodo
Reporter: Abdul Basith Bardan | Editor: Anna Suci Perwitasari
KONTAN.CO.ID – JAKARTA. President Joko Widodo said the Regional Comprehensive Economic Cooperation or the Regional Comprehensive Economic Partnership (RCEP) would bring positive benefits to countries in the region.
The plan, RCEP is targeted to be signed on 15 November. This achievement can be realized after going through long negotiations because it took approximately 8 years.
“We have to prove that this enormous economic integration will benefit our people,” said Jokowi during a speech at the 37th ASEAN Summit via video conference, Thursday (12/11).
Jokowi said that RCEP would provide optimism for regional development. Just so you know, RCEP includes 5 partner countries besides 10 ASEAN member countries.
Also Read: President Jokowi attended the 37th Asean Summit virtually
Partner countries participating in RCEP are China, Japan, South Korea, Australia and New Zealand. Previously there was India in negotiations, but at the end of the process India decided to step down.
Previously, the Minister of Trade, Agus Suparmanto Agus, said that the existence of RCEP would have a positive effect and signal to business actors, given that RCEP has a market share of 29.6% of the world’s population and 29% of world GDP. In fact, according to him, business activities will be concentrated in Asia.
Not only that, he also said FDI in RCEP reached 29.3% of world FDI. Furthermore, Indonesia can also directly utilize RCEP to enter global supply chain and increase participation in the global value chain.
“This will also create jobs, increase welfare, and increase GDP in 2021-2032, which will increase by about 0.05%, otherwise RCEP will decrease by 0.07%. This will also facilitate encouraging economic capacity building and the ability of SMEs in this RCEP area, “said Agus.
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