IK-CEPA (Indonesia-Korea Comprehensive Economic Partnership Agreement) is a trade agreement between Indonesia and South Korea. The agreement is designed to deepen economic cooperation and has the potential to benefit various sectors. For the local electronics industry in Indonesia, IK-CEPA can encourage the development of local component manufacturers as a backup for South Korean electronics companies. The agreement also involves the reduction or elimination of tariffs on trade in goods, which could provide particular advantages for both countries. In addition, the agreement is seen as an important step in strengthening economic ties between Indonesia and South Korea. Despite expectations and potential benefits, some concerns and uncertainties remain, such as the need for South Korean companies to actively engage and the impact of other related policies, such as the Omnibus Law, in attracting investment and supporting local industries.
The search results show that IK-CEPA is expected to bring benefits to the economic relationship between Indonesia and South Korea, especially in terms of trade, investment and economic cooperation. However, specific shortcomings or disadvantages of the IK-CEPA were not explicitly mentioned in the search results provided. If there are specific concerns or criticisms regarding the IK-CEPA, they may not be available in the sources provided.
IK-CEPA (Indonesia-Korea Comprehensive Economic Partnership Agreement) is a trade agreement concluded between Indonesia and South Korea. This agreement has the main objective of deepening economic cooperation between the two countries, with the potential to provide economic benefits to various sectors in both countries.One important aspect of the IK-CEPA is its impact on the local electronics industry in Indonesia. The agreement can be a driver for the development of local component manufacturers as back-up for South Korean electronics companies. This creates opportunities for the growth of the electronics industry in Indonesia by involving local parties in the electronics supply chain.
In addition, the IK-CEPA also involves the reduction or elimination of tariffs on trade in goods between the two countries. This move is expected to provide specific benefits to both parties, by facilitating easier market access and providing incentives for bilateral trade growth.This agreement is considered an important step in strengthening economic relations between Indonesia and South Korea. With increased economic cooperation, it is expected to create a more conducive business environment for both countries to invest and trade with each other.However, despite the expectations and potential benefits, there are also some concerns and uncertainties related to the IK-CEPA one such concern is the need for.
Loss of cooperation between Indonesia and South Korea IK-CEPA IK-CEPA (Indonesia-Korea Comprehensive Economic Partnership Agreement) has been debated in various aspects, such as the impact on the economy, company profits, and the potential for human resource development. The following are some of the disadvantages of IK-CEPA, namely:
- IK-CEPA could increase Indonesia's trade deficit with South Korea, which in 2020 reached USD 5.2 billion. This could put pressure on the balance of payments and the rupiah exchange rate.
- IK-CEPA may increase competition between local products and imports from South Korea, especially in labor-intensive industrial sectors, such as textiles, footwear, and electronics. This may result in a decline in production, sales, and employment in these sectors.
- IK-CEPA may increase Indonesia's dependence on South Korea as a trade and investment partner, which may pose geopolitical risks and economic instability in the event of a conflict or crisis in the East Asian region
- IK-CEPA may increase the potential for human rights, environmental and social violations due to the influx of South Korean investments and products that do not meet applicable standards in Indonesia. This could lead to conflicts and tensions between the government, companies, and communities.
- Losses in infrastructure development: Some potential sectors include the automotive, chemical, metal, energy, technology, and infrastructure sectors. However, it is worth noting how the impact on Indonesia's infrastructure development along with the implementation of IK-CEPA.
- Impact on Local Industries: While the IK-CEPA is expected to provide a boost to industries in both countries, there are concerns that local industries in Indonesia may come under pressure. Competition with more advanced and innovative South Korean products may disadvantage certain sectors in Indonesia, especially those that are not yet fully prepared to compete in the global market.
- Environmental and Sustainability Issues: Trade agreements are often perceived to have negative impacts on the environment and sustainability. IK-CEPA may also put additional pressure on natural resources and the environment in both countries. In some cases, increased trade may result in unsustainable exploitation of natural resources and increase the risk of negative environmental impacts.
- Implementation Difficulties: The implementation of IK-CEPA may face obstacles in its implementation. The process of harmonizing regulations and adjusting domestic policies of both countries can be complex and time-consuming. These implementation difficulties may hinder the achievement of the agreement's objectives and reduce the expected positive impact of the agreement.
Tariff barriers can also make it difficult for Indonesian products to enter the South Korean market, so Indonesia finally agreed to the IK-CEPA. However, this raises the question of why an agreement that should benefit both parties cannot be realized in the cooperation between Indonesia and South Korea. Therefore, the impact and benefits of this cooperation are still under further study and debate.A possible weakness associated with the IK-CEPA is the imbalance of benefits between Indonesia and South Korea. In this context, it is worth considering how the agreement may affect key economic sectors in each country, as well as its impact on trade and investment imbalances.
In addition, another potential drawback may be related to Indonesia's dependence on commodity supplies from South Korea, while South Korea may gain greater access to the Indonesian market. This may create an imbalance in bilateral economic relations and affect Indonesia's food and industrial sovereignty.
In addition, the implementation of IK-CEPA may also have an impact on local industrial sectors, such as the electronics industry. While this agreement may encourage economic cooperation, it is important to consider how this may affect the competitiveness and sustainability of domestic industries, as well as dependence on foreign investment and technology.
In this context, it is important to conduct a thorough evaluation of potential impacts and ensure that Indonesia's long-term interests are protected within the framework of this agreement.
NAMA:LAKSHITA SRI DJ
PRODI:ILMU HUBUNGAN INTERNASIONAL,ANGKATAN 2022
UNIVERSITAS TEKNOLOGI YOGYAKARTA
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