The UK has a Joint Economic and Trade Committee (JETCO) with: Indonesia which, according to Robert Kimbell, is expected to become a “World Top Five economy” by 2040. Prices Brexit Britain’s freedom to negotiate free trade agreements outside the EU, the Time Party chairman argued that the JETCO could pave the way for free trade agreement negotiations with the emerging Southeast Asian nation.
He said: “Indonesia is expected to become a top five of the global economy by 2040.
And what is Britain doing now to develop its trade with this emerging economic superpower?
“We have a JETCO.
“Hopefully this will lead to negotiations for a modern bilateral free trade agreement.”
A decade ago, Indonesia was unwelcomely labeled as one of the so-called “Fragile Five” emerging markets, economies highly vulnerable to capital outflows and a currency collapse as global interest rates rise.
But fast forward to another round of monetary tightening led by the US Federal Reserve, Southeast Asia’s largest economy and its capital markets have shown remarkable resilience, throwing the spotlight on whether the situation has fundamentally changed.
Indonesia’s central bank is one of the least aggressive banks in the world and has given no clue when it might raise interest rates, while inflation is only just above the two to four percent target and the rupiah is one of the best. emerging Asian emerging currencies.
This is in contrast to 2013, when the mere mention by the Fed of plans to wind down the stimulus caused destabilizing capital outflows, pushing the rupiah down 20 percent, forcing Bank Indonesia (BI) to cut interest rates by 175 basis points. increase.
Despite some political risks, Indonesia appears to be weathering economic conditions better than the others listed in the fragile five – India, Turkey, South Africa and Brazil.
On Thursday, Indonesia extended a cooperation agreement with South Korea regarding the construction of a new capital on the island of Borneo to replace the overcrowded Jakarta, paving the way for Korean companies to participate in the construction of digital infrastructure.
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Jokowi said the two countries had already entered into partnerships in the development of the new capital, including in construction and water supply.
Yoon said South Korea can share its experience with the construction of the administrative city of Sejong, which was officially launched in 2012.
Jokowi said initial construction work on the capital was underway during a visit there last month.
The Indonesian leader also said he had pushed for investment partnerships with Korea, particularly in Indonesia’s electric vehicle development, including an integrated battery industry project with mining and automotive steel industries.