The Indonesian government is pushing for the swift completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to protect and expand its textile industry amid global geopolitical uncertainty. The EU is Indonesia’s largest market for textile products, accounting for 30% of global demand, followed by the US at 15%. Citing Vietnam’s success in boosting textile exports by 50% after signing a similar agreement with the EU, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized the importance of finalizing the IEU-CEPA negotiations. Alongside trade expansion efforts, the government is implementing domestic policies to enhance the competitiveness of its textile industry, particularly for small and medium enterprises (SMEs). A key initiative is the machinery revitalization program, supported by a Rp20 trillion (US$1.2 billion) investment subsidy to modernize production equipment. Without these upgrades, Hartarto warned, Indonesia’s textile sector could struggle to remain competitive due to inefficiencies in energy use and production. To further support labor-intensive industries like textiles, footwear, food and beverages, furniture, and leather, the government has introduced an investment credit scheme with an 8-year tenor and a 5% interest subsidy. These measures aim to strengthen the sector and create more jobs once the IEU-CEPA is implemented. Indonesia is targeting the agreement’s completion in the first half of this year, following 19 rounds of negotiations over the past nine years, covering trade access, investment, public procurement, and regulatory harmonization.Source: https://en.antaranews.com/news/349137/indonesia-pushes-for-ieu-cepa-to-boost-textile-industry (ICE GIACARTA)

Fonte notizia: ANTARA NEWS, 19 March 2025