The United Kingdom (UK) and Indonesia have signed an MoU to establish the Joint Economic and Trade Committee (JETCO). The new committee will help promote trade, investment, and economic cooperation ties between the two countries.
As a fellow member of the G20 and the largest economy in South East Asia, Indonesia has been a key trading partner for the UK. The total trade between the two countries in 2020 reached approximately USD 2.2 billion. Looking forward, the newly established JETCO will help to address market access barriers and support the entry of Indonesian goods and services into the UK market and vice versa.
To date, the two countries have identified nine potential sectors along with opportunities for cooperation, namely (1) education, (2) food and beverage and agricultural products, (3) technology, (4) medicine and health care, (5) infrastructure and transportation, (6) wood and wood products, (7) renewable energy, (8) services finance and professionals, as well as (9) the creative economy.
The JETCO mechanism will be preceded by a working group (WG) meeting at the senior officials’ level. In the future, Indonesia and the UK will be able to explore the possibility of a higher economic partnership, such as a trade agreement.
In addition to JETCO, Indonesia also welcomed the UK’s proposal to discuss a new agreement to facilitate trade by the UK’s official export credit agency, UK Export Finance (UKEF).
(Sources: Gov.uk; Dezan Shira & Associates)