Evaluating the reactivation of Indonesia-Korea comprehensive economic partnership agreement (2019-present)

Kim, Sol (2024) Evaluating the reactivation of Indonesia-Korea comprehensive economic partnership agreement (2019-present). Bachelor thesis, Universitas Pelita Harapan.

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Abstract

This thesis delves into the reactivated Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) as a pivotal economic collaboration between South Korea and Indonesia after many obstacles and rearrangements over the course of years. The urgency of exploring these dynamics lies in the reactivation of IK-CEPA which finally has met its consent and has been implemented at the beginning of last year, January 1st, 2023, amidst the contemporary global economic landscape where nations seek strategic alliance for its growth. Thus, this research unfolded two research questions relevant to the implication of the reactivated IK- CEPA and the motives for Korea and Indonesia to engage in this economic cooperation once again. In aims to support the research, neoliberalism is grounded in its theoretical framework employing four relevant keywords: economic partnership, free trade, foreign investment, and common interest. The research method utilized a qualitative approach and a descriptive research method. With secondary data as the source, this research uses narrative analysis to answer research questions. This research had two findings. Firstly, the reactivation of IK- CEPA has led to substantial economic impacts for Indonesia and South Korea, specifically in increased bilateral trade, investment flows, and technology transfer. Secondly, the economic interests for Indonesia and Korea to re-engage in IK-CEPA are multifaceted as they cover beyond economic considerations and consider their own strategic interests. These findings would collectively contribute to understanding economic interdependence and provide valuable insight for further readers interested in bilateral economic agreements and international relations. / Skripsi ini menggali Perjanjian Kemitraan Ekonomi Komprehensif Indonesia- Korea (IK-CEPA) yang diaktifkan kembali sebagai kolaborasi ekonomi penting antara Korea Selatan dan Indonesia setelah melalui berbagai hambatan dan penyesuaian selama bertahun-tahun. Urgensi dari eksplorasi dinamika ini terletak pada pengaktifan kembali IK-CEPA yang akhirnya telah disetujui dan diimplementasikan pada 1 Januari 2023, di tengah lanskap ekonomi global kontemporer di mana negara-negara mencari aliansi strategis untuk pertumbuhannya. Oleh karena itu, penelitian ini mengungkap dua pertanyaan penelitian yang relevan dengan implikasi dari IK-CEPA yang diaktifkan kembali dan insentif bagi Korea dan Indonesia untuk terlibat dalam kerja sama ekonomi ini sekali lagi. Dalam upaya mendukung penelitian, Neoliberalisme menjadi dasar kerangka teoritis dengan menggunakan empat kata kunci yang relevan, yaitu kemitraan ekonomi, perdagangan bebas, investasi asing, dan kepentingan bersama. Metode penelitian menggunakan pendekatan kualitatif dan deskriptif. Dengan data sekunder sebagai sumbernya, penelitian ini menggunakan analisis naratif untuk menjawab pertanyaan penelitian. Penelitian ini memiliki dua temuan. Pertama, pengaktifan kembali IK-CEPA telah menyebabkan dampak ekonomi yang substansial bagi Indonesia dan Korea Selatan, khususnya dalam peningkatan perdagangan bilateral, arus investasi, dan transfer teknologi. Kedua, kepentingan ekonomi bagi Indonesia dan Korea untuk terlibat kembali dalam IK-CEPA bersifat beragam karena melibatkan pertimbangan di luar ekonomi dan mempertimbangkan kepentingan strategis masing-masing. Temuan ini secara kolektif memberikan kontribusi untuk memahami saling ketergantungan ekonomi dan memberikan wawasan berharga bagi pembaca yang tertarik pada perjanjian ekonomi bilateral dan hubungan internasional.

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