A feasibility study on an economic cooperation agreement between Taiwan and Indonesia concluded that such a treaty would benefit both countries, Representative to Indonesia Andrew Hsia (夏立言) said in a statement.
Hsia said that an agreement would be of substantial interest to both countries, which have seen their economic ties develop rapidly in recent years.
The conclusion of the one-year study, carried out jointly by the Chung Hua Institution for Economic Research in Taipei and Lembaga Ilmu Pengetahuan Indonesia, was published at a symposium held on Thursday in Jakarta.
The Jakarta Post reported that the study found that an economic cooperation agreement would benefit Indonesia by boosting labor absorption, industrial performance and bilateral trade, as well as the capacity of local small and medium enterprises.
An agreement might boost local demand for unskilled labor in the apparel industry by 1.5 percent and in the textile industry by 0.6 percent.
It would boost the local need for skilled labor in the motor vehicle and spare parts industry by 0.49 percent, while increasing output 1.16 percent in several industries, such as apparel, textiles, electronics and food products, the newspaper said.
Taiwan would see its exports rise by roughly US$1.5 billion upon the elimination of import duties with Indonesia, as well as because of liberalization in the service sector and improvements in the customs clearance process, especially for textiles, chemicals, rubber and plastic products, electronic equipment and machinery, the paper said.
Taiwan’s imports would likely jump by US$750 million, which would likely comprise agricultural products and processed foods, textiles, chemical, rubber and plastic products, motor vehicles and parts, electronic equipment and machinery, the report said.
Taiwan and Indonesia do not plan to begin negotiations over an economic cooperation agreement immediately after the completion of the study, Ministry of Foreign Affairs spokesman Steve Hsia (夏季昌) said, adding that such an agreement was a medium and-long term goal.