On 24-25 October 2011, South Korea and Indonesia held the third Joint Task Force on Economic Cooperation. The two sides made a number of announcements on improving what is already a rapidly growing and increasingly significant economic relationship.

The announcements included agreement to sign a Comprehensive Economic Partnership Agreement (CEPA) at the earliest possible date, with the intention of achieving a bilateral Free Trade Agreement (FTA) soon after. South Korea and Indonesia last week held the third round of meetings toward a joint feasibility study, which will provide the basis for future FTA negotiations.

The Joint Task Force on Economic Cooperation also reconfirmed the intention of the two states to cooperate on ‘mega projects’, which will symbolize South Korea’s position as a major partner in Indonesia’s master plan for economic development, first discussed between the countries’ heads of state in December 2010.

In 2010, South Korea – Indonesia bilateral trade was valued at USD22.9 billion with both sides aiming to increase this to USD40 billion in 2014 and USD100 billion in 2020. The announcement highlights the success of the Joint Task Force on Economic Cooperation and potentially decreases the political and bureaucratic challenges that an FTA will face.

Image: embassy@indonesiaseoul.org