Indonesia and Turkey Agree To Sign Trade Deal
Indonesian President Joko “Jokowi” Widodo has mentioned that the governments of Turkey as well as Indonesia have each agreed to sign a a trade deal. This trade deal would benefit both countries through the reduction of existing trade barriers as well as by the creation of a good climate that would support the investment initiatives in both of the nations. In this article, we would be covering in depth as to the terms and the benefits that this trade deal could potentially bring for Turkey and Indonesia.
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What Is The Trade Deal All About
President Joko Widodo was in Turkey for a one day state visit. This was right ahead of the upcoming G-20 Summit which he would be attending in Hamburg, Germany. During the one day visit, he met with the President of Turkey, Recep Tayyip Erdoğan as well as about twenty five different Chief Executive Officers From Turkey’s shipbuilding, defense and energy industries.
This trade deal was signed as part of the Indonesian-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA). Indonesian President Joko Widodo issued a joint statement with Turkish President Recep Tayyip Erdoğan saying that both Turkey and Indonesia have ‘agreed to bring positive trends in trade and investment’. Last year, Indonesia and Turkey recorded 1.3 billion dollars in bilateral trade, with a surplus of about $713,000 being in favour of Indonesia.
What Are The Potential Benefits From This Trade Deal
Currently Turkish Investment in Indonesia, as compared to other forms of foreign investment, take up a small portion of about $100,000 being invested in the first quarter of 2017 for instance. This shows that there is still immense potential for both countries to increase in trade and investment with each other, and the signing of the new trade deal would help the two nations achieve that. As mentioned above, some of the industries that are eyeing for investment opportunities in Indonesia are companies from the shipbuilding, defense as well as the energy related industries, Previously, Turkey and Indonesia collaborated together to manufacture the ‘kaplan’ medium tank which turned out to be a success in the defense industry. Furthermore, Turkey has also manufactured floating power stations Karadeniz Powership Zeynep Sultan, which currently powers Medan, Amurang, Ambon and Bolok in Indonesia, so as to meet the demands of electricity.
On the other hand, the two countries hope to combat terrorism in both countries and have agreed to develop an Information Technology Intelligence System so as to exchange crucial information that could combat terrorism.
All in all, the signing of the new trade deal would seek to reduce trade barriers between the two countries so as to improve economic ties.
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