Jakarta, IO – Indonesia together with 13 countries that are members of the Indo-Pacific Economic Framework (IPEF) signed the world’s first supply chain agreement aimed at creating a strong and competitive supply chain in the region.
Coordinating Economic Minister Airlangga Hartarto together with economic ministers from 13 IPEF partner countries signed the agreement during a meeting in San Francisco, Tuesday (14/11), per CNBC Indonesia.
“(The agreement) is a form of Indonesia’s commitment to help strengthen supply chains in the region,” said Airlangga.
The agreement was negotiated in December 2022 in Brisbane, Australia. The purpose is to establish a systematic structure that opens up opportunities for relevant parties to share understanding regarding regional supply chains.
This collaboration is expected to improve crisis response capabilities for supply chain disruptions, as well as overcome other possible vulnerabilities in the long term.
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Apart from that, this agreement will facilitate business actors and investors to strengthen supply chains through business matchmaking. The impact will also encourage labor rights and workforce development in each country.
Each IPEF member country will send representatives to the tripartite body, such as representatives of the government, workers and employers. This is in line with the mandate of establishing three supply chain bodies, namely IPEF Supply Chain Council, IPEF Supply Chain Crisis Response Network and IPEF Labor Rights Advisory Board. (bp)