Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) held a focused discussion titled "Optimizing CEPA and International Trade Agreements Post-Liberation Day," at Menara Kadin Indonesia, South Jakarta, on Monday, May 5, 2025.

The event was aimed at exploring ways to maximize the benefits of international trade agreements, particularly the Comprehensive Economic Partnership Agreements (CEPA), in order to strengthen Indonesia’s position within the global value chain.

Pahala N. Mansury, Vice Chairman for Trade and International Agreements at Kadin Indonesia, stated that Indonesia currently has close to 26 international trade agreements, including several CEPAs with key partner countries.

Pahala emphasized that fully leveraging these agreements is crucial for improving Indonesia’s export performance and enhancing its integration into global production networks.

“We need to adopt a mindset that positions Indonesia as an integral part of the global supply chain,” said Pahala.

He further noted that other countries involved in CEPA arrangements have consistently prioritized integrating themselves into the production systems of their respective partner nations.

“Typically, the first thing these countries do is to ensure they become an essential component of their partner country’s supply chain,” he added.

During the session, Pahala also addressed concerns about Indonesia’s Q1 2025 economic growth, which stood at 4.87%, slightly below the government's 5% target. Nonetheless, he expressed continued optimism for the months ahead.

“We remain reasonably optimistic. The government has initiated programs around deregulation and bureaucratic reform, which we hope will support increased investment and net exports moving forward,” he said.

Pahala highlighted that compared to other countries, Indonesia’s performance remains relatively strong, and the outlook for the remaining three quarters of 2025 is promising.

On the topic of trade negotiations with the United States, which some have described as too lenient on Indonesia's part, Pahala refuted this notion.

“Indonesia is among the few countries currently engaged in active trade negotiations with the U.S. This is a strategic opportunity. The U.S. accounts for only about 10–12% of global trade. That means 88% of trade opportunities still lie elsewhere, and we should work to capture them,” he explained.

He also emphasized the need to increase awareness and understanding among Indonesian businesses to take full advantage of existing trade agreements.

“We must continue encouraging businesses to recognize the potential at hand and to position Indonesia as a vital player in the supply chains of CEPA partner countries,” Pahala asserted.

Andrew Cainey, Senior Advisor at Boston Consulting Group (BCG), also shared insights during the session. He noted that although the global landscape remains volatile, there is room for collaboration and innovation.

“Globalization will continue, though in a different form. Indonesia should invest in strengthening its position within global value chains and seize opportunities such as the ‘China Plus One’ strategy,” said Cainey.

Meanwhile, Yose Rizal Damuri, Executive Director of the Center for Strategic and International Studies (CSIS), stressed that CEPA should not be viewed solely as a tool for boosting exports.

“CEPA must be used intensively and comprehensively—not only to enhance exports but also to promote investment, services, development, and economic competitiveness as a whole,” Yose concluded.

The discussion was also attended by several key figures from Kadin Indonesia and the Ministry of Trade, including Mulyadi Jayabaya, Coordinating Vice Chairman for Food, Benny Soetrisno, Vice Chairman for Associations and Extraordinary Members, Yugi Prayanto, Vice Chairman for Marine Affairs and Fisheries, Rifda Ammarina, Vice Chairman for Marketing, Promotion, Innovation, and MSME Product Development, Bayu Wicaksono Putro, Director of Market Development and Export Information, Ministry of Trade of the Republic of Indonesia.