ASIATODAY.ID, SAN FRANCISCO – The strong desire of Indo-Pacific Economic Framework (IPEF) partner countries to have a strong and competitive supply chain in the Indo-Pacific region has resulted in the world’s first Supply Chain Agreement.
As a form of Indonesia’s commitment to help strengthen supply chains in the region, the Coordinating Minister for Economic Affairs of the Republic of Indonesia, Airlangga Hartarto together with economic ministers from 13 IPEF partner countries signed a Supply Chain Agreement at the Third Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM) in San Francisco , Tuesday, November 14 2023.
The Supply Chain Agreement, whose negotiations begin in December 2022 in Brisbane, Australia, aims to establish a structure that allows parties to develop a deeper mutual understanding of regional supply chains, improve crisis response capabilities to supply chain disruptions, share information and best practices regarding supply chain opportunities and vulnerabilities, facilitating business actors and investors to strengthen supply chains (business matchmaking), encouraging supply chain resilience in important sectors and key goods, as well as encouraging labor rights and workforce development among partner countries IPEF.
After signing the Supply Chain Agreement, the Government will carry out the domestic processes necessary for the implementation of the IPEF Supply Chain Agreement and coordinate with parties related to the implementation of the supply chain agreement.
Each IPEF member country will provide senior official representation to each tripartite body (representatives of the Government, workers and employers). As is known, the Supply Chain Agreement mandates the formation of three supply chain bodies, namely the IPEF Supply Chain Council, IPEF Supply Chain Crisis Response Network, and the IPEF Labor Rights Advisory Council.
On this occasion, regarding Pillar III of IPEF, Clean Economy, the United States said that there were several real benefits related to Pillar III, including; IPEF Catalytic Capital Fund worth US$30 million, US DSC Global Climate Fund worth US$700 million, and the IPEF Investor Forum which will be held in Singapore in April or June 2024. (AT Network)
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