Jakarta. Indonesia and Chile have initiated negotiations within the framework of the Indonesia-Chile-Comprehensive Economic Partnership Agreement (IC-CEPA), aimed at enhancing investment opportunities.

Deputy Trade Minister Jerry Sambuaga signed the investment negotiation with Claudia Sanhueza, Deputy Minister of International Economic Relations of Chile, at the Trade Ministry auditorium in Jakarta on Thursday.

"This is a significant opportunity for Indonesia to enter previously underutilized markets, particularly non-traditional ones. We see Latin America, especially Chile, as the first country to establish a partnership with us," said Jerry Sambuaga.

The IC-CEPA was initially signed in 2017 by the then-Trade Minister Enggartiasto Lukita and the then-Foreign Affairs Minister of Chile.

Jerry said that the investment between the two countries would continue to grow with this negotiation. "Investments are already in place, and I believe they will expand into the trade sector," he explained.

Sanhueza echoed these sentiments after the signing, emphasizing the importance of investment negotiations for enhancing inter-country development.

Last month, Indonesia sent a trade mission to Chile to better leverage the trade pact that entered into force in 2019. During the two-day visit on May 9-10, nine Indonesian companies presented their business models to local firms, including Chile’s largest retail company, Cencosud.

According to data from the Ministry of Trade, Indonesia's trade balance with Chile recorded a surplus of $139.2 million in 2023. Indonesia's exports to Chile in 2023 were valued at $312.6 million, while its imports from Chile amounted to $173.4 million. Bilateral trade volume reached $110.6 million in the first three months of 2024.

Indonesia's exports to Chile include minerals, copper, chemical products, automotive parts, electronic components, food, and palm oil. 

The CEPA removes 89.6 percent of the tariff posts for Indonesian goods entering the Chilean market, marking Indonesia’s first bilateral free trade agreement with a Latin American country.

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