Indonesia and China Boost Trade Ties with AEO Education
Bilateral cooperation focuses on trusted trader scheme to streamline customs
Indonesia and China are fortifying their trade relationship by enhancing educational initiatives around the Authorized Economic Operator (AEO) program. This collaboration aims to build greater trust and efficiency in cross-border commerce between the two nations.
Advancing Customs Trust
The Indonesian Chamber of Commerce and Industry’s China Committee (KIKT) is spearheading efforts to leverage mutual customs trust. According to Jona Widhagdo Putri, Deputy Chairperson of KIKT’s China Committee, the AEO scheme is more than just a trade facilitation tool.
“The AEO scheme is more than just a mechanism to facilitate trade. It is a trust-based system that accelerates safe, predictable, and competitive trade flows,”
—Jona Widhagdo Putri, Deputy Chairperson of the Indonesian Chamber of Commerce and Industry’s China Committee
Putri highlighted that KIKT acts as a vital link, translating policy into tangible results through effective information dissemination. The committee is actively partnering with the Chinese Embassy, the Chinese Chamber of Commerce, China’s General Administration of Customs (GACC), and Indonesian Customs to promote AEO awareness.
Global Standard for Trade Facilitation
Liu Cheng, Executive Vice Chairman of the Chinese Chamber of Commerce in Indonesia, explained that the AEO framework is an internationally recognized system, endorsed by the World Customs Organization (WCO).
“The idea is to certify companies (manufacturers, importers, exporters, customs brokers, carriers, and warehouses) that meet certain safety standards and management requirements. These companies are then granted streamlined customs clearance and appropriate preferential treatment,”
—Liu Cheng, Executive Vice Chairman of the Chinese Chamber of Commerce in Indonesia
Liu emphasized that achieving AEO certification is a strategic move for businesses seeking to improve trade facilitation, boost competitiveness, and gain recognition for their robust compliance and risk management practices. He noted that the World Customs Organization reports that AEO programs globally can reduce inspection rates by up to 70% for certified companies.
Future Collaboration and Support
Looking ahead, Liu Cheng stressed the importance of continued cooperation between Indonesia and China to expand AEO education among businesses in both countries. His association plans to host more exchange activities and develop improved mechanisms for AEO certification assistance.
These initiatives will include helping member companies better understand AEO policies, enhance their certification capabilities, and capitalize on development opportunities through specialized training and personalized guidance.
