The Potential Political Economy Impact of the Proposed Indonesia-Chile Comprehensive Economic Partnership Agreement

ABSTRACTThis paper evaluates the political economy implications of theproposed Indonesia-Chile Comprehensive Economic PartnershipAgreement (IC-CEPA). Partial equilibrium economic analysis predictsthat both countries would benefit from IC-CEPA. An assessment ofbroader national interests and ideological factors also favors such anagreement. Thus, the recent announcement by the Indonesiangovernment that it will expedite all on-going trade negotiations,including the IC-CEPA, bodes well for a smooth resumption of progressand promises to strengthen and elevate the bilateral relations into a newstage