Cultivating Mutual Prosperity: Chile-Indonesia Business Forum Maps Out Routes to Strong Economic Partnership

In Jakarta, the Chile-Indonesia Business Forum brought together a notable delegation from The Federation of Chilean Industry (SOFOFA), led by former Chilean President Mr. Eduardo Frei Ruiz-Tagle. This collaborative endeavor, orchestrated by the Embassy of the Republic of Chile in Jakarta, the Indonesia Chambers of Commerce and Industry (Kadin Indonesia), and SOFOFA, aimed at cultivating economic ties between the two nations.

The event unfolded on Monday, November 13, 2023, at Ballroom 1 of the esteemed Fairmont Jakarta Hotel. Distinguished figures from both sides engaged in dialogues and presentations spotlighting the potential for economic cooperation.

During the forum, the Indonesia Chambers of Commerce and Industry introduced nine Flagship Initiatives, encompassing areas such as Kadin Cipta, Net Zero Hub, Sustainability, Ibu Kota Negara (IKN), Vocacy, Blue Economy, Digital Economy, Health, and Omnibus Law. The organization also elucidated the top five trade commodities exchanged between Indonesia and Chile, including Copper, Vehicle & Parts, Machinery & Equipment, Urea & Fertilizer, and Footwear. Additionally, insights into recent trade and investment policies, focusing on TKDN, Labor Policy, and Investment/FDI, were shared. The Indonesia Chambers of Commerce and Industry underscored its active collaboration with global partners to facilitate business expansion, empower MSMEs, and contribute to capacity-building and training initiatives.

SOFOFA's deliberations focused on the Comprehensive Economic Partnership Agreement (CEPA) between Chile and Indonesia. They detailed why Chile selected Indonesia as a key partner, citing Indonesia's significant population share of 8.4% and GDP contribution of 3.7% to the global economy. Furthermore, Chile's existing trade agreements with six ASEAN countries positioned Indonesia as a strategic choice for enhanced economic collaboration. Highlighting potential opportunities, SOFOFA noted that, based on the 2019 baseline, approximately 3,546 products were exported by Chile worldwide, yet none to Indonesia. Conversely, Indonesia imported goods from around the world, excluding Chile, accounting for 73.5% of its total imports, emphasizing the untapped potential for Chilean exports to Indonesia.

Both sides engaged in an extensive discussion on new opportunities and challenges, particularly in the agricultural industry, aiming to identify areas of collaboration and mutual benefit in this vital sector.

As the Chile-Indonesia Business Forum concluded, it marked a substantial stride toward a fortified economic partnership. The event exemplified the commitment of both nations to explore untapped potential, fostering greater collaboration in trade, investment, and various industries.

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