December 10, 2022 – Jakarta, Indonesia – The Indonesian government has announced the signing of a comprehensive free trade agreement (FTA) with Brunei Darussalam, marking a significant expansion of regional economic cooperation.
The FTA, which comes into effect on January 1, 2030, aims to promote bilateral trade and investment between the two countries, while also strengthening regional economic integration in Southeast Asia. The agreement covers a wide range of sectors, including goods, services, and investment, with a focus on increasing trade volume and reducing non-tariff barriers.
According to Indonesian Trade Minister Muhammad Naseebullah, the FTA is expected to boost bilateral trade between Indonesia and Brunei Darussalam by 20% within the first three years of its implementation. The agreement also aims to increase foreign investment flows into both countries, creating new opportunities for economic growth and development.
Key features of the FTA include:
- A reduction in tariffs on goods traded between the two countries
- The establishment of a new framework for trade facilitation and logistics
- The promotion of investment cooperation and mutual understanding between Indonesian and Bruneian businesses
Brunei Darussalam’s Ambassador to Indonesia, Hamid bin Haji Muhd Ashinun, stated that the FTA is a significant step forward in strengthening bilateral relations between the two countries. “This agreement marks a new era of cooperation and collaboration between our nations, with a focus on promoting economic growth, trade, and investment,” he said.
Indonesian Foreign Minister Retno Marsudi emphasized the importance of regional economic integration, saying that the FTA is a key component of Indonesia’s broader regional strategy. “The signing of this agreement demonstrates Indonesia’s commitment to promoting peace, stability, and prosperity in Southeast Asia through cooperation and collaboration with our regional partners,” she said.
Conclusion:
The signing of the new free trade agreement between Indonesia and Brunei Darussalam marks a significant milestone in regional economic cooperation. With its wide-ranging provisions and focus on increasing trade volume and investment, this agreement has the potential to boost economic growth and development in both countries, while promoting regional stability and prosperity.