Jakarta. South Korea intends to make Indonesia a production base in ASEAN, now that both countries are eliminating most of their tariffs, including on auto parts and steel, according to its government official on Thursday.
The Indonesia-Korea Comprehensive Partnership Agreement (IK-CEPA) came into force early this year. The IK-CEPA eliminates 95.5 percent of South Korean tariffs. Indonesia has agreed to remove 92 percent of its tariff posts.
With the agreement in effect, both countries are expected to enjoy broader market access, among other things, according to Oh Hyun, the deputy director for free trade agreement at South Korea’s Trade Ministry.
“South Korea is interested in making Indonesia a new production base in ASEAN, and a production hub to enter the region’s market and the world. The elimination of tariffs on steel, auto parts, and petrochemical products through the CEPA are vital means,” Oh Hyun told a…
