RI - S. Korea Discuss Comprehensive Partnership Agreement

Jakarta, April 19 (Antara) - Indonesia and South Korea are to discuss the establishment of an Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA). Indonesia`s Industry Minister MS Hidayat expressed optimism here on Friday that the agreement could be reached by the end of this year. "The IK-CEPA would be discussed. The target is that finalization could be done before the APEC meeting in Bali in November but if possible it would be finished by the end of 2013," he said after receiving South Korea`s Minister of Trade, Industry and Energy Yoon Sang-jick. Hidayat said he hoped negotiations for the IK-CEPA would be finished this year and investment would immediately enter. "Our target in the CEPA is investment. It`s alright if we have to lose a bit in trading," he said. He expected Rp50 billion of investment from South Korea to enter after the IK-CEPA was established. "So Korea has agreed with our steps starting with a 500 kilometer toll road development project and development of a steel industry which is the mother of industry," he said. The next step would be development of petrochemical industries in view of the country`s increasing dependency on chemical raw materials, he said. "So, petrochemical producer from South Korea, Honam, and Pertamina, who would build the petrochemical industry, must be fully supported so that our dependency on imports could be eliminated," he said. The IK-CEPA is also expected to be able to open market access for national industrial products. The secretary general of the ministry of industry, Anshari Bukhari, said Indonesian negotiators were expected to focus on national interests in the discussion for cooperation schemes. "It is hoped the bilateral cooperation agreement could open bigger access for our products to South Korea," he said. He said the biggest investment from South Korea has gone to the multifarious industrial sector such as footwear, textile and textile product industries. South Korea meanwhile is now targeting steel and petrochemical industries in the country, he added. Anshari said Indonesia hoped South Korea would invest more in Indonesia to open new employment meanwhile products from the investment projects could be exported to South Korea while Indonesia would be the production base. "The chance to attract investment from them is big. It is up to us now to how we could exploit it," he said. South Korea is expected to become the third biggest investor in Indonesia by 2020 with investment reaching US$98 billion by the time. Next year that country`s investment in the country is projected to reach US$34.8 billion spreading in various sectors from infrastructure, oil and gas to mining refineries. Trade between the two countries meanwhile is expected to reach US$50 billion in 2015. Right now Indonesia and South Korea have already cooperated under the South Korea-ASEAN Free Trade Agreement.