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Jakarta digitises processes to spur economy amid pandemic

Jun '20
Pic: Shutterstock
Pic: Shutterstock
Indonesia has digitised various administrative processes to spur trade and investment amid a slowing economy and social restrictions arising out of the coronavirus pandemic. The move is being widely perceived as a positive step for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which enters into force on July 5.

The country is now allowing Australian exporters to use an electronic certificate of origin (CoO) to claim free trade agreement benefits for its exported products, according to Sally Deane, senior trade commissioner of the Australian Trade and Investment Commission (Austrade).

The progress in regulatory reforms between the two countries has witnessed some acceleration due to COVID-19, he said in a virtual discussion recently.

Before the pandemic, Indonesia used electronic quarantine certificates for the trade of agricultural products with Australia, the Netherlands and New Zealand, according to the Indonesian Agriculture Quarantine Agency.

Deane said that moving forward, both governments should further utilise digital channels to allow Indonesian and Australian business communities to participate in virtual business matching or product showcases at a time when international travel is restricted, according to a report in an Indonesian newspaper.

Under the CEPA agreement, Indonesian exports to Australia will get zero tariffs. Likewise, most of Australia’s exports, including live male cattle, frozen beef, dairy products and sugar, may enter Indonesia without any duties.

The Indonesian Trade Ministry expects the export of some Indonesian products to Australia, such as automotive products, timber, textiles, electronics and communication tools, to increase despite recording a $3.2 billion trade deficit last year.

Digitisation has also taken place on the investment front. The Investment Coordinating Board (BKPM) currently provides an online one-stop service platform, the Online Single Submission (OSS), to process business permit applications. The OSS was created to simplify the administrative process of starting a business in the country.

Fibre2Fashion News Desk (DS)

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