Analysis of Trade in Goods between Indonesia and South Korea on Cooperation Forum IKCEPA

  • Ragimun Abdullah Ministry of Finance


Abstract: Indonesia Korea Comprehensive Economic Cooperation Partnership (IKCEPA) arises from the desire of both countries to boost trade performance and make the free trade agreement more comprehensive. CEPA agreement with South Korea has targeted the reduction and elimination of tariffs that cover more products and services. This study analyzed the relationship between Indonesia merchandise trade cooperation with South Korea. Besides, look at the potential of the Korean market for goods exports from Indonesia featured. To deepen the study simple equilibrium analysis is used to analyze the potential of the South Korean market for goods exports Indonesia. The analysis showed that after the implementation of AKFTA in 2007, Indonesia merchandise trade performance by sector turned out to have an average growth of imports by 21.36 percent, higher than the average export growth of 8.19 percent. There are some items which have the potential to become a mainstay of exports to Korea that includes textiles, wood processing, manufacturing goods such as spare parts of household appliances, bicycles and others. Likewise, there are some agricultural products such as pineapple, guava, and animals such as freshwater fish, crabs, cuttlefish and others. However, the export of these items to South Korea is still hampered by their tariff barriers. Forum IKCEPA cooperation can be a bridge to fill the gap between the two countries for tariff reduction, market acces and an increase in exports of both countries.

Keywords: IKCEPA, negotiation, export


Download data is not yet available.


Boediono. (1981). International Economics, Introduction to Economics, Series First Sinopsis, Edisi. BPFE, Yogyakarta, Indonesia. p. 56.
Christian, H. & Pasteels, J. M. (2006). Assesing Bilateral Trade Potential at the Commodity Level: An Operational Approach, International Trade Centre, Geneva
De Silva, N. (2012). Trade Liberalization Effects on Agricultural Production Growth: The case of Sri Lanka. Journal of International Agricultural Trade and Development, 8(2), the University of Minnesota Department of Applied Economics. Grosse, R. (1996). International Technology Transfer in Services (PDF). Journal of International Business Studies, 27, 782.
Helmers, C. (2006). Options for Mongolia for the Formation of Bilateral Free Trade Agreements - Options in Merchandise Trade: An Overview. Mongolian Ministry of Industry and Trade, Trade Analysis and Negotiations Unit (UNDP, GTZ, USAID).
ITC (UNCTAD/WTO). (2006). Assessing Bilateral Trade Potential at the Commodity Level, Market Analysis Section (MAS) International Trade Center Geneva, Switzerland.
ITC. (2001). An Operational Approach: Foreign Trade Statistics: A guide to their use in market research, ITC technical paper 2001, ITC/T307.E/PMD/MAS/01-IX.
Juan, B. (2014). Latin Americas Missing Global Value Chains, source, downloaded August, 25 at 11.50 pm)
PKRB. (2013). Influence of FTA and EPA on trade and investment flows with the Partner Country, PKRB BKF, Ministry of Finance, Indonesia
The Decade Long Journey of Korea’s FTA. (2014). ITT Working Paper No.14-01, Myoung, Jin ho Jung , Hye Sun Je, Hyung Jun Mung, Seol Ji, Seoul -Korea.
Trade Map User Guide. (2014). Trade statistic for international business development, International Trade Centre, Geneva.
Viner, J. (1950). The Customs Union Issue. Carnegie Endowment for International Peace, New York.
How to Cite
ABDULLAH, Ragimun. Analysis of Trade in Goods between Indonesia and South Korea on Cooperation Forum IKCEPA. Journal of Economics and Behavioral Studies, [S.l.], v. 8, n. 6, p. 171-182, jan. 2017. ISSN 2220-6140. Available at: <>. Date accessed: 24 nov. 2017.
Research Paper