Jakarta. Indonesia said Thursday that it still did not have any plans to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The CPTPP is a trade pact that brings together Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Their combined economies represent 15.6 percent of the global gross domestic product (GDP).

The UK is a non-founding country of the CPTPP, but it is currently in the process of acceding to the deal. China and Taiwan have already applied for CPTPP membership in 2021. South Korea has announced that it also wants in. 

Amidst growing exports to the respective CPTPP members, Indonesia has not shown interest in being part of the agreement.

“As far as I know, there are no such plans [for a CPTPP membership]," the Indonesian trade policy agency head Kasan told a virtual conference hosted by think-tank FPCI on Thursday.

According to Kasan, Indonesia's exports to the CPTPP member countries have been growing at approximately 8.2 percent per year in 2018-2022. 

"But the trade data that I brought up was only to respond to the question whether the mega free trade agreements [such as the CPTPP] could manage and reduce the impact of geopolitical disruption,” Kasan said.

He added: “Despite not being a CPTPP member, our trade performance [with the respective signatories] is significant. … But it does not mean Indonesia is planning on joining the CPTPP." 

Kasan, however, did not go into details on why Indonesia still chose to be absent in the trade deal.

The CPTPP is expected to eliminate over 98 percent of tariffs in the free trade area. The agreement obliges countries to treat foreign and domestic suppliers equally in government procurement. Indonesia today is trying to cut down on imported goods in its public procurement, among others, to develop its domestic industry.

Trade Ministry data shows that Indonesia's exports to the CPTPP member countries are on the rise. For instance, Indonesia’s exports to Japan surged from $17.9 billion in 2021 to $24.9 billion the following year. The bilateral trade was in Indonesia’s favor as the ASEAN country booked a $7.7 billion surplus in 2022.

Indonesia’s exports to Canada also stood at $1.3 billion in 2022, up from $1 billion the previous year. However, Jakarta posted a $1.7 billion deficit with Ottawa in 2022. Indonesia mostly exported natural rubber, footwear, menswear, and paper to Canada that year. Jakarta’s top Canadian imports were fertilizers, wheat, sawdust, and soybeans, the Trade Ministry reported.

Read More: Procedures for Countries to Join RCEP to be Ready by 2024

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