Indonesia sees new trade regulations in place following RCEP taking effect for it

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JAKARTA -- The Regional Comprehensive Economic Partnership (RCEP) agreement has taken effect for Indonesia on Tuesday, with the country putting new regulations in place for its trade with other members of the world's largest trade bloc in terms of population and the size of economy and trade.

So far, the trade pact has taken effect for 14 of the 15 members of the RCEP, which comprises 10 ASEAN (Association of Southeast Asian Nations) member countries and their five trading partners, namely China, Japan, the Republic of Korea (ROK), Australia, and New Zealand. The RCEP entered into force on Jan 1, 2022.

Indonesia's new regulations on origin of goods and issuing documents of origin for goods exported from it have been in place starting from Tuesday, as part of implementing the RCEP agreement.

Trade Minister Zulkifli Hasan said in a press release last Friday that the new regulations specify the procedure of obtaining certificates of origin for goods exported from the Southeast Asian country.

The business sectors in Indonesia can also choose between the two types of document, a certificate of origin and a declaration of origin to claim "preferential rates". Both documents can be issued independently.

"This new rule is in line with a trade commitment facilitated by the RCEP, the world's largest trading bloc. Business sectors will be benefited by this measure as the RCEP scheme will make the flow of exported goods in the region become smoother," Hasan said.

Over the past year, the trade agreement has helped lower the cost of trade, facilitated the integration of industrial chains, and benefited consumers in the region.

"The agreement is also expected to boost competitiveness and global production networks, promote regional supply chains by increasing export market access for goods and services, reduce or remove trade barriers, and increase technology transfer in the region," Hasan said.