Home / Knowledge / News / Textiles / S Korea, Indonesia announce agreement on free trade deal

S Korea, Indonesia announce agreement on free trade deal

Nov '19
Pic: Shutterstock
Pic: Shutterstock
Indonesia and South Korea yesterday completed negotiations—which continued for seven and a half years—on a free trade deal by declaring an agreement to remove tariffs on steel, textile and autos. The two sides signed a joint announcement on the completion of the South Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA) at their bilateral summit.

Both the countries will officially sign the agreement early next year after reviewing it after which it will be subject to ratification by the parliaments in both sides, according to global newswires.

The summit was part of the Republic of Korea-Association of Southeast Asian Nations (ASEAN) Summit, which South Korea hosted in the port city of Busan.

If the South Korea-Indonesia CEPA goes into effect, 93 per cent of Indonesia's market will be open to South Korea, up from current level of 80.1 per cent.

Indonesia has agreed to lift tariffs on South Korean textiles, steel, autos, auto parts and machine parts, while the latter will exempt tariffs on bunker C oil, sugar and beer from the former.

Indonesia's minister of trade Agus Suparmanto added in a statement that the deal will provide Indonesia with ‘wider access’ to the South Korean market compared to what has been provided through ASEAN-Korea Free Trade Agreement, Indonesian media reported.

The two countries' bilateral trade stood at $18 billion in 2018, up 14 per cent over the previous year. Indonesia exports raw materials like coal briquettes and petroleum to South Korea, and imports such things as machinery and processed metals.

South Korea has also risen as a major investor in Indonesia. It was the eighth largest investor in the archipelago in the nine months ended September, with realised foreign direct investment reaching $638 million.

In December last year, Korean-Japanese conglomerate Lotte Group has pledged to invest at least $3.5 billion in what is to be Indonesia's largest petrochemical plant.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 5th Dec 2019

Vietnam, Egypt should resolve issues to raise trade: MoIT

The two-way Egypt-Vietnam trade value of $470 million last year does...

Pic: Lenzing

Textiles | On 5th Dec 2019

Lenzing has vision towards net-zero CO2 emissions by 2050

The Lenzing group, a recognised leader in climate action, recently...

Pic: Shutterstock

Textiles | On 5th Dec 2019

Pak releases Rs 81.132 mn for textile industry development

Pakistan's ministry of planning development and reforms has so far...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Cindy McNaull, Cordura

Cindy McNaull

We have broad range of options in durable fabrics

Mandeep Nagi, Shades of India

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Madhu Sudhan Bhageria,

Madhu Sudhan Bhageria

Incorporated in August 1990, Filatex India Ltd manufactures manmade...

Marco Girola,

Marco Girola

With its commitment to innovation and deep technical expertise,...

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Marcel Alberts, Eurofibers

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Justin Gutierrez, INDA

Justin Gutierrez

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search