Indonesia Update: Preferential Tariffs Under The RCEP And IK-CEPA

In an effort to bolster international trade, the Government of Indonesia recently ratified two free trade agreements. It ratified the Regional Comprehensive Economic Partnership ("RCEP") agreement with the enactment of Law No. 24 of 2022 regarding the Ratification of RCEP ("Law 24/2022"), and it ratified the Comprehensive Economic Partnership Agreement Between the Government of the Republic of Indonesia and the Government of the Republic of Korea ("IK-CEPA") with the enactment of Law No. 25 of 2022 regarding the Ratification of IK-CEPA ("Law 25/2022").

Both the RCEP and IK-CEPA aim to eliminate import duty by providing preferential tariffs for signatories to the RCEP and IK-CEPA.