Jurnal Asia Pacific Studies (Dec 2018)
Improving Free Trade Agreement (FTA) Between Indonesia-European Union (EU) Through Comprehensive Economic Partnership Agreement (CEPA)
Abstract
This study aims to analyze the free trade agreement (FTA) between Indonesia and the European Union (EU) through Comprehensive Economic Partnership Agreement (CEPA). Suppose it improves economic relations while creating benefits for both. In 2012, Indonesia and the EU began negotiation on the CEPA. The CEPA has been presented as having the ability to help both parties take full advantage of unexploited economic relations. The CEPA is a comprehensive agreement discussing various aspects of economic relations. It is beyond being a simple agreement for removing trade barriers. The liberalization of international trade in goods remains to be an important aspect of the CEPA, investment promotion and facilitation, the improvement of trade in services, and the creation of improved competition policy practices would promote greater economic relations. CEPA contributes Indonesia economics development, i.e.: to promote increased trade between Indonesia and the EU. It focuses on trade liberalization boosting the trade relations intensity by lowering trade barrier and by facilitating trade; to boost trade and investments in services; to enhance technological advance and skills transfer in the goods, services and investment. A free trade agreement between the EU and Indonesia provides a stable, balanced,and long-term framework to challenge economics integration.
