Economic Watch: RCEP boosts trade cooperation between China, Indonesia-Xinhua

Economic Watch: RCEP boosts trade cooperation between China, Indonesia

Source: Xinhua

Editor: huaxia

2024-01-04 14:30:30

NANNING, Jan. 4 (Xinhua) -- A batch of coated ivory board worth about 430,000 yuan (about 60,098 U.S. dollars) was packed up at Guangxi Sun Paper Board Co., Ltd. in Beihai, a coastal city in south China's Guangxi Zhuang Autonomous Region before the New Year holiday. The products are expected to arrive in Indonesia in about 15 days.

"With the certificates of origin under the Regional Comprehensive Economic Partnership (RCEP), our goods will enjoy a tariff reduction of nearly 20,000 yuan when clearing customs in Indonesia," said Liu Ning, director of the company's export customs affairs.

In 2023, the company applied for nearly 200 certificates of origin under RCEP, which have significantly helped the company explore new advantages in foreign trade and expand their market in Indonesia, Liu added.

The RCEP, which entered into force on Jan. 1, 2022, comprises 15 Asia-Pacific countries, including 10 ASEAN member states and their five trading partners, namely China, Japan, the Republic of Korea, Australia and New Zealand. The RCEP took effect for Indonesia on Jan. 2, 2023 and has enabled the country to implement new trade regulations.

In accordance with the commitment of the RCEP agreement, Indonesia will implement immediate zero tariffs on 65.1 percent of products originating from China, and China will also implement immediate zero tariffs on 67.9 percent of products originating from Indonesia since the effective date.

Based on the China-ASEAN Free Trade Agreement (CAFTA), Indonesia will add zero-tariff treatment to more than 700 Chinese products, including auto parts, motorcycles, televisions, clothing, shoes and plastic products.

China will also cut taxes on more products from Indonesia, such as pineapple juice, canned goods, paper products and auto parts, further opening up its market to Indonesia.

Over the past decade, economic and trade cooperation between China and Indonesia has become increasingly closer. The trade volume between China and Indonesia increased from 50 billion U.S. dollars in 2013 to 150 billion U.S. dollars in 2022. China has maintained its status as Indonesia's largest trading partner for 10 consecutive years.

The RCEP has become an important driving force for the growth of foreign trade among members of the agreement. Notably, it has injected new vitality into China's economic and trade cooperation with Indonesia.

Data from China's Embassy in Indonesia showed that in the first 10 months of 2023, bilateral trade between China and Indonesia reached 114.5 billion U.S. dollars, and in the first three quarters, China invested 5.6 billion U.S. dollars in Indonesia, up nearly 8 percent year on year.