Containers are pictured stacked up at a port in Hong Kong before being loaded onto cargo ships on Oct 5, 2019. (ANTHONY WALLACE / AFP)

HONG KONG - The part relating to Indonesia under the Free Trade Agreement (FTA) and the Investment Agreement (IA) between the Hong Kong Special Administrative Region (HKSAR) and the Association of Southeast Asian Nations (ASEAN) will enter into force on July 4, the HKSAR government announced on Wednesday.

On trade in goods under the FTA, Indonesia will progressively reduce and eliminate customs duties on goods originating from Hong Kong, a HKSAR government spokesman said.

Once the agreements come into force for Indonesia, there will be a total of eight ASEAN member states for which both the FTA and the IA have taken effect

The tariff commitments made by Indonesia cover different kinds of Hong Kong commodities, including jewellery, articles of apparel and clothing accessories, watches and clocks as well as toys.

ALSO READ: HK, ASEAN ink free trade agreement

On trade in services, Hong Kong service providers will enjoy better business opportunities and legal certainty in market access for different services sectors in Indonesia under the FTA.

These include services sectors in which Hong Kong has traditional strengths or has potential for development, including business services, construction and related engineering services, and tourism and travel related services, according to the spokesman.

Under the IA, Indonesia will provide Hong Kong enterprises investing in its area with fair and equitable treatment of their investments, physical protection and security of their investments as well as the assurance of the free transfer of their investments and returns, said the spokesman.

In case of expropriation or investment loss owing to war, armed conflict or similar event, Indonesia will also provide compensation to Hong Kong enterprises investing in its area according to the agreed standard as specified under the IA.

Once the agreements come into force for Indonesia, there will be a total of eight ASEAN member states for which both the FTA and the IA have taken effect.

The dates of entry into force for the remaining two ASEAN member states, Brunei Darussalam and Cambodia, will be announced as soon as they are confirmed, the spokesman said. 

READ MORE: HK overall exports down 3.7% in April, exports to mainland up