Vision Group Report: Invigorating the Indonesia-EU Partnership

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Competition policy is a necessary means to create equal, non-discriminatory, and level playing fields in the two economies. Fairness in business activities without distorting competition is welfare enhancing to consumers in the economy. Fair competition will induce greater efficiency and productivity, in turn resulting in higher income levels and higher growth trends in the medium run. Competition policy should be effective in addressing unfair business practices that distort competition. Many countries have established competition policy based on widely agreed principles whilst adjusting its aplication on to local conditions and to the business climate in their own economy. The trading partners will therefore have distinctive ideas and approaches towards competition policy To ensure that companies effectively have equal access to each other markets, the Vision Group argues that the CEPA between Indonesia and the EU should include some disciplines that both parties would agree to implement through their respective competition laws. They might, for instance, agree to prohibit and sanction certain restrictive practices and transactions involving goods or services which distort competition, trade and investment, such as cartels or monopolistic abuses by companies and anti-competitive mergers and/or acquisitions. This would imply that anticompetitive practices will not be tolerated by the parties and would be subject to effective enforcement action, when they lead to harming consumers and higher prices. However in a longer term perspective, some sectoral exemptions from competition could be reconsidered. Competition law 34 11 Competition Policy should also apply to state-controlled enterprises as this may help in fostering greater efficiency. It would be important that the agreement would contain provisions that prohibit certain types of subsidies and state aids, which are considered to be particularly distorting thereby affecting trade and investment between the parties, in the letter and spirit of the WTO Agreement on Subsidies and Countervailing measures, and possibly go beyond it. Recognizing that competition policy could contribute to creating a conducive, stable, and predictable development for trade, which is particularly important for small scale investors who decide on investing in Indonesia, it is important to establish closer cooperation in the field of competition policy, such as: • Exchanging information concerning the relevant imposition of competition policy measures. • Include provisions in the CEPA on consultations and dialogues on all matters relating to competition policy. • Enhancing capacity building such as providing training, education, human resources development, and technical assistance, and possible exchange of staff or traineeships. • Exploring the merits and scope of possible cooperation between the Competition Supervisory Commission of Indonesia and the European Commission.
12 Sustainability: Environment as a Competitive advantage Indonesia has long recognized the importance of improving the economic and social fabric of the Nation as a prerequisite for achieving environmental goals. It is best expressed by President Susilo Bambang Yudhoyono who has emphasized the importance of pro-poor, pro-job, pro-growth and proenvironment policiy. For the Indonesian government, the objective of “Sustainable Trade in Indonesia” is initially associated with trade that should not harm the environment (the first pillar) and this has been extended to embrace social concerns (the second pillar), and which finally includes the importance of economic growth (third pillar) as the basis to meet environmental and social goals. The EU shares this same strategy of sustainable growth as embodied in the Treaty establishing the European Union as well as various policies and laws. The Vision Group argues that sustainability is a political necessity but also an inevitability driven by consumer tastes 35
Page 1 and 2: Invigorating The Indonesia-EU Partn
Page 3: Abbreviations ACP Africa, Caribbean
Page 6 and 7: SUMMARY OF THE TERMS OF REFERENCE F
Page 9 and 10: CONCLUSIONS AND RECOMMENDATIONS 7
Page 11 and 12: often be accentuated by the combina
Page 13: 20. Furthermore, in order to increa
Page 16 and 17: Relations between Indonesia and the
Page 18 and 19: eaching almost 7% in the last quart
Page 20 and 21: The existing EU and Indonesia allia
Page 22 and 23: Architecture of the CEPA 20 4 The V
Page 24 and 25: Market Access in Goods 22 5
Page 26 and 27: 24 Members have an effective opport
Page 28 and 29: Services are of increasing importan
Page 30 and 31: manufacturing and services (banking
Page 32 and 33: trade will bring to bear considerab
Page 34 and 35: poor management 5 . As a result the
Page 38 and 39: increasingly demanding “environme
Page 40 and 41: 38 14 Communication strategy
Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
Page 45 and 46: are concerns in Indonesia over poss
Page 47 and 48: nature of complex and fairly aggreg
Page 49 and 50: to exploit potentially beneficial c
Page 51 and 52: In the political cooperation area,
Page 55 and 56: BACKGROUND NOTES 53
Page 57 and 58: 2. DEVELOPMENTS Even though the tra
Page 59 and 60: 1. to complete its ambitious negoti
Page 61 and 62: Data collected from an investment s
Page 63 and 64: direct recourse to international ar
Page 65 and 66: 2.2. EU Member States EU Member Sta
Page 67 and 68: - Component 2 (implemented by UNICE
Page 69 and 70: 7. Indonesia to improve the investm
Page 71 and 72: Indonesia is the largest timber exp
Page 73 and 74: 3. TECHNICAL COOPERATION The REACH
Page 75 and 76: The implementation of National Indo
Page 77 and 78: Cooperation and coordination betwee
Page 79 and 80: The proposal also puts forward a ne
Page 81 and 82: The EU’s objectives are to secure
Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
Page 86 and 87:
In the last decade, the expansion o
Page 88 and 89:
Indonesia’s automotives industry
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88 Rapidly expanding services secto
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There is remarkable scope for coope
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In Indonesia the processed foods in
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Electronics is Indonesia’s larges
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One of the fastest growing segments
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The textile, clothing and footwear
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100
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Delegation of the European Union In
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Vision Group Report: Invigorating the Indonesia-EU Partnership

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