In addition to boosting Indonesian exports such as copper, a deal would allow greater South Korean investment in Southeast Asia’s largest economy (PT NEWMONT NUSA TENGGARA)

Jakarta (AFP) – Indonesia aims to sign a long-stalled free trade deal with South Korea by November in a move that could boost two-way trade by billions of dollars, its trade ministry said Wednesday.

The deal would help to unlock vast natural resource exports including coal, copper, tin, rubber and pulp exports from Indonesia to wealthy South Korea, but negotiations have been on hold since 2014 due to technical disagreements.

Indonesia aims to finalise the agreement at the Korea-ASEAN summit in November, trade ministry spokesman Fajarini Puntodewi told AFP on Wednesday.

Trade minister Enggartiasto Lukita and his South Korean counterpart Hyun Chong Kim agreed to resume negotiations during bilateral talks in Jakarta on Tuesday.

A joint statement said both sides would instruct officials to “commence work immediately and make swift progress” on the deal.

The countries would target “reaching a conclusion as soon as possible by the end of this year,” it said.

Bilateral trade was valued at $20 billion in 2018 but that figure could increase to $30 billion by 2022, according to Indonesia’s trade ministry.

In addition to boosting Indonesian exports, a deal would allow greater South Korean investment in Southeast Asia’s largest economy.

Greater access to Indonesia’s more than 260 million people would benefit South Korea’s chemical and construction sectors, and boost exports in online education, medical devices and electric vehicles.

South Korean firms would have an easier time breaking into Indonesia’s domestic market, which is currently dominated by Chinese and Japanese firms, a South Korean trade official said.

The planned signing would be just a month before Indonesian presidential elections in which incumbent Joko Widodo is pushing his economic record in the battle for re-election.

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