JAKARTA (TheInsiderStories) - The United Kingdom (UK) and Indonesia have concluded the first round of exploratory trade talks and committed to further strengthening GBP3 billion (US$4.16 billion) trade and investment links through a new joint trade dialogue. The international trade secretary, Liz Truss and minster of trade, Muhammad Lutfi, also signed a memorandum of understanding at the same day.
“Today’ agreement sets out our ambitions to strengthen our trade and investment ties, deepen our collaboration across a range of sectors, from financial services and technology to renewables and open new markets for UK businesses,” she said in an official statement released on Monday (04/26).
The new Joint Economic and Trade Committee (JETCO) will help promote and develop trade, investment and economic cooperation ties and address market access barriers affecting UK businesses trading with Indonesia. Today’ announcement follows a Joint Trade Review (JTR) which was carried out by the two parties over the last 18 months to explore opportunities to increase trade and investment in each countries.
The JTR identified nine key sectors for enhanced cooperation, including education and training, financial and professional services, healthcare and life science, food and drink, agriculture, renewables and green energy. As well as establishing the JETCO, it highlights the findings of the JTR and commits to further collaboration in a number of areas, including, the establishment of a dialogue to resolve market access barriers in areas such as renewable energy and food and drink.
The department wrote, Indonesia is a key partner for the UK, as a fellow member of the G20 and the largest economy in Southeast Asia. Truss said, by 2050 Indonesia is predicted to be one of the top five economies globally.
“We want to strengthen trade links with like-minded countries like Indonesia who share our belief in democracy and the international rules-based system and help strengthen Global Britain’s dynamic partnerships with ASEAN and Southeast Asia,” said Truss.
Last year, Indonesian and British governments signed the Terms of Reference of the JTR. The two countries with the largest economies and members of Group 20 have the opportunity to renew and develop the stronger economic ties between the two.
Trade Review is a collaboration between Indonesia and the UK to assess the current condition of our bilateral trade and investment relations, and look for possible opportunities to enhance bilateral cooperation for the future. This review will produce a joint report which will include recommendations for the two governments.
Director general at trade ministry, Iman Pambagyo, explained, Britain was ranked 22nd of Indonesia’ export destination countries, and 23rd in the country of origin of Indonesia’ imports. The value of Indonesia’ exports and imports to the UK were recorded at $1.4 billion and $1.0 billion, respectively. While, the country’ investment value to Indonesia was valued at $87.6 million in 2020.
Indonesia and UK signed the terms of references to conduct a JTR between the two countries on Oct. 16, 2019. The signing was carried out by the United Kingdom after leaving the European Union so that relations with Indonesia that have been established can be continued and even improved.
After Britain declared its exit from the bloc, the country led by Queen Elizabeth began conducting bilateral explorations with various countries, including Indonesia. In contrast, the country with the largest economy in Southeast Asia intends to finalize various trade agreements to encourage exports and state revenue.
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Written by Editorial Staff, Email: theinsiderstories@gmail.com
