Minister encourages industry optimising trade agreements

Jakarta (ANTARA) - Indonesia's Trade Minister Budi Santoso continues to encourage manufacturers, including companies investing in Indonesia, to utilise trade agreements with various partner countries.

Business actors, according to him, could expand market access and increase exports through trade agreements made by the Indonesian government.

"Businesses can obtain more competitive tariffs in export destination markets. Indonesia has 20 trade agreements that have been implemented, 15 more are in the ratification process, and 11 others are currently under negotiation," Santoso said in a statement received here on Friday.

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During a meeting with the representatives of Denso Global Denso Group Indonesia at the Trade Ministry Office on Thursday (July 16), Minister Santoso received several inputs to improve Indonesia's competitiveness.

Some of the suggestions included simplifying administrative procedures and strengthening infrastructure to support smooth export activities.

Santoso explained the Ministry has continued to simplify the trade administration, through the initiation of automatic utilisation of preferential Certificates of Origin (SKA), by developing an electronic Certificate of Origin (e-SKA) system.

Through the system, businesses exporting goods to countries that have trade agreements with Indonesia will be automatically directed to utilise available preferential tariff facilities.

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Currently, SKA automation applies to exports to the United Arab Emirates, Hong Kong, Japan, China, South Korea, Australia, and Pakistan.

"The SKA system in Indonesia has been automated. When businesses export to countries that already have trade agreements with Indonesia, then the system will directly guide them to utilise preferential tariff facilities," Santoso explained.

He also emphasised the Ministry will continue coordinating with relevant ministries and agencies. Such coordination is required to help resolve various obstacles faced by businesses, including those related to logistics.

"We are committed to providing solutions that support smooth exports and create an increasingly conducive business climate," he said.

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Translator: Maria, Kenzu

Editor: Fransiska Ninditya

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