The House of Representatives approves the trade agreement between Indonesia and the European Free Trade Area

After legislators approved a bill on a transaction between Indonesia and the European Free Trade Association (EFTA), Indonesia was only one step away from the first trade agreement with European countries. The House of Representatives approved the draft of the Comprehensive Economic Partnership Agreement (IE-CEPA) between Indonesia and the European Free Trade Area on Friday, which consists of Iceland, Lichtenstein, Norway and Switzerland. The legislation is currently awaiting the signature of President Yoko “Jokowi” Widodo, which will immediately make IE-CEPA effective. The president rarely rejects bills approved by the House of Representatives. “We once again ask all members whether they agree to turn the [IE-CEPA] bill into law?” said Sufmi Dasco Ahmad, deputy speaker of the House of Representatives, after hearing the resounding ” Agree!” Then he knocked the mallet. From other legislators. Minister of Trade Muhammad Lutfi (Muhammad Lutfi) stated that the agreement will open Indonesia to new markets and investors, promote small and medium-sized enterprises (SMEs) to participate in global value chains, and increase overall exports. He said in a plenary session of the House of Representatives on Friday: “We are optimistic about the implementation of this bill. The agreement can help Indonesia achieve economic recovery after COVID-19.” Lutfi continued that Indonesia will also promote the IE-CEPA framework. The Indonesian Sustainable Palm Oil (ISPO) certification was accepted by Switzerland. After seven years of negotiations, the agreement was signed in December 2018. However, since then, only Iceland and Norway have approved the agreement.