Local and regional newswires, including Tempo are reporting that President Jokowi, has officially ratified the Regional Comprehensive Economic Partnership (RCEP); a regional free trade agreement involving 10-ASEAN countries and five partner countries, which are Australia, New Zealand, China, Japan, and South Korea, to support the national economic development programme as well as drive national economic recovery forward.
Law No. 24 of 2022 concerning the ratification of the RCEP contains the complete RCEP agreement, which regulates tariffs on the export and import of goods, and export subsidies for agricultural products, among others.
The idea for the RCEP was forwarded during Indonesia’s leadership of ASEAN back in 2011.
The agreement is aimed at consolidating five free trade agreements made by ASEAN and partner countries. The RCEP concept was then agreed on by ASEAN member countries by the end of 2011 in Bali, Indonesia.
Coordinating Minister for Economic Affairs Airlangga Hartarto, stated that the RCEP is the largest trading block agreement in the world. The agreement covers 30-percent of the world’s GDP, 27-percent of the world’s trade, 29-percent of the world’s direct investment, and 29-percent of the world’s population.
Foreign Minister Retno Marsudi stated that the implementation of the RCEP requires high levels of political commitment.