Agreement (IK CEPA) will smooth investment from Hyundai and Lotte in Indonesia.
The two countries have agreed to complete negotations for the trade deal by October 2019.
The agreement was reached during a meeting between Indonesian Trade Minister Enggartiasto Lukita and Korean Commerce Minister Yoo Myung-Hee on the sidelines of the 51st ASEAN Economic Ministers' Meeting in Bangkok, Thailand on Monday, September 9, 2019.
“Regarding IK-CEPA, we agreed to conclude the process by 2019. In addition, we also agreed to complete the substance by October," Indonesian trade minister said in a written statement received by Media Indonesia.
According to reports, Hyundai will invest USD1 billion to boost its car production in
Indonesia. Meanwhile, Lotte also plans to invest USD3.5 billion USD to develop a petrochemical
factory with Chandra Asri.
The negotiation process was started since October 2011. The two countries then underwent seven rounds of negotiations in two years. However, the negotiation process was suspended in 2014.
Five years later, the two countries decided to resume the negotiation process through the issuance of a mutual statement by the commerce ministers of both countries in February 2019. (Translator: Muhammad Gestinev)