Indonesia, South Korea to complete trade talks

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south-korea-busanSouth Korea and Indonesia on October 12 agreed to complete negotiations on an economic pact that includes free trade provisions by the end of the year.

Visiting South Korean President Park Geun-hye said that a “comprehensive economic partnership” agreement would help the two countries “institutionalise bilateral economic co-operation.”

“We agreed to conclude the negotiations by the end of this year,” she said after talks with her Indonesian counterpart Susilo Bambang Yudhoyono.

In 2012, the two countries began negotiating the agreement, which would not only involve reducing trade barriers and market opening but also industrial cooperation and investment.

South Korea is the third-largest investor in Indonesia, with new investment reaching $1.9 billion last year, according to official data.

Indonesia is also a major buyer of South Korea’s military hardware, including submarines and T-50 Golden Eagle supersonic trainer jets.

“We are confident that Korean investment in Indonesia will continue to contribute to Indonesia’s economic growth,” said Hatta Radjasa, Indonesia’s coordinating minister for the economy.

Trade between Indonesia and South Korea rose to nearly $30 billion last year, from $14.9 billion in 2007, the government said.

Yudhoyono said the two countries aimed to increase trade to $50 billion by 2015 and $100 billion by 2020.

Meanwhile South Korea said it has agreed with Indonesia to sign a bilateral, three-year currency swap deal worth up to $10 billion, which could help Jakarta better defend the rupiah hit by capital flight.

Either of the two Asian countries can swap 10.7 trillion won for 115 trillion rupiah or vice versa under the deal, which South Korea said was agreed between finance ministers and central bank chiefs in Washington.

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Reading Time: 2 minutes

South Korea and Indonesia on October 12 agreed to complete negotiations on an economic pact that includes free trade provisions by the end of the year.

Reading Time: 2 minutes

south-korea-busanSouth Korea and Indonesia on October 12 agreed to complete negotiations on an economic pact that includes free trade provisions by the end of the year.

Visiting South Korean President Park Geun-hye said that a “comprehensive economic partnership” agreement would help the two countries “institutionalise bilateral economic co-operation.”

“We agreed to conclude the negotiations by the end of this year,” she said after talks with her Indonesian counterpart Susilo Bambang Yudhoyono.

In 2012, the two countries began negotiating the agreement, which would not only involve reducing trade barriers and market opening but also industrial cooperation and investment.

South Korea is the third-largest investor in Indonesia, with new investment reaching $1.9 billion last year, according to official data.

Indonesia is also a major buyer of South Korea’s military hardware, including submarines and T-50 Golden Eagle supersonic trainer jets.

“We are confident that Korean investment in Indonesia will continue to contribute to Indonesia’s economic growth,” said Hatta Radjasa, Indonesia’s coordinating minister for the economy.

Trade between Indonesia and South Korea rose to nearly $30 billion last year, from $14.9 billion in 2007, the government said.

Yudhoyono said the two countries aimed to increase trade to $50 billion by 2015 and $100 billion by 2020.

Meanwhile South Korea said it has agreed with Indonesia to sign a bilateral, three-year currency swap deal worth up to $10 billion, which could help Jakarta better defend the rupiah hit by capital flight.

Either of the two Asian countries can swap 10.7 trillion won for 115 trillion rupiah or vice versa under the deal, which South Korea said was agreed between finance ministers and central bank chiefs in Washington.

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