Vision Group Report: Invigorating the Indonesia-EU Partnership

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82 1. INTRODUCTION Indonesia and the EU signed a Partnership and Cooperation Agreement (PCA) in November 2009. The PCA was the first of its kind between the EU and ASEAN countries. It is now in the process of ratification by both the 27 EU Member States and Indonesia, which should be completed by the end of the year. It opened a new era in bilateral relations of Indonesia and the EU, based on shared principles such as equality, mutual respect, mutual benefit, democracy and rule of law. The Agreement aims at strengthening political, economic and sectoral cooperation across a wide range of policy fields, including trade, environment, energy, science and technology, and good governance, as well as tourism and culture, migration, counter terrorism and the fight against corruption and organised crime. The Parties of the Agreement undertook to hold a comprehensive dialogue and promote further cooperation between them on all sectors of mutual interest. Their efforts will in particular be aimed at: a) establishing cooperation bilaterally and in all relevant regional and international fora and organisations; b) developing trade and investment between the Parties to their mutual advantage; c) establishing cooperation in all trade and investment-related areas of mutual interest, in order to facilitate trade and investment flows and to prevent and remove obstacles to trade and investment; d) establishing cooperation in other sectors of mutual interest, notably tourism, financial services; taxation and customs; macro-economic policy; industrial policy and SMEs; information society; science and technology; energy; transport and transport safety; education and culture; human rights; environment and natural resources, including marine environment; forestry; agriculture and rural development; cooperation on marine and fisheries; health; food safety; animal health; statistics; personal data protection; cooperation on the modernisation of the state and public administration; and intellectual property rights; e) establishing cooperation on migration issues, including legal and illegal migration, smuggling and trafficking in human beings, f) establishing cooperation on human rights and legal affairs; g) establishing cooperation on countering the proliferation of weapons of mass destruction; h) establishing cooperation on combating terrorism and transnational crimes, such as the manufacturing and trafficking of illicit drugs and their precursors and money laundering; i) enhance existing and encourage possible participation of both Parties within relevant sub-regional and regional cooperation programmes; j) raising the profiles of both Parties in each others’ regions; XV INDONESIA – EU PARTNERSHIP AND COOPERATION AGREEMENT k) promoting people-to-people understanding through cooperation of various non-governmental entities such as think-tanks, academics, civil society, and the media, in the form of seminars, conferences, youth interaction and other activities.
Through the establishment of a Joint Committee and a number of sectoral working groups, the PCA will steer cooperation and ensure a comprehensive and more intensive dialogue between Indonesia and the EU. Findings and recommendations from the Joint Committee will feed in the meetings at Ministerial level. 2. COOPERATION ON TRADE AND INVESTMENT General principles of the cooperation on trade and investment between Indonesia and the EU, laid down in the Agreement include the following: • The Parties shall engage in a dialogue on bilateral and multilateral trade and trade-related issues with a view to strengthening bilateral trade relations and advancing the multilateral trade system. • The Parties undertake to promote the development and diversification of their reciprocal commercial exchanges to the highest possible level and to their mutual benefit. They undertake to achieve improved market access conditions by working towards the elimination of barriers to trade, in particular through the timely removal of non-tariff barriers and by taking measures to improve transparency, having regard to the work carried out by international organisations in this field. • Recognizing that trade plays an indispensable role in development, and that assistance in the form of trade preferences schemes have proven beneficial to developing countries, the Parties endeavour to strengthen their consultation on such assistance in full WTO compliance. • The Parties shall keep each other informed concerning the development of trade and trade-related policies such as agricultural policy, food safety policy, animal health policy, consumer policy, hazardous chemical substances, and waste management policy. • The Parties shall encourage dialogue and cooperation to develop their trade and investment relations, including the provision of technical capacity. 3. LINK TO BILATERAL TRADE AGREEMENTS The EU is of the view that any bilateral trade agreement forms part of the political relationship with third countries and should be integrated in a broader Partnership and Cooperation Agreement. Therefore an appropriate link to the PCA would need to be made in any future trade agreement. 4. FOR MORE INFORMATION http://eeas.europa.eu/delegations/indonesia/documents/eu_indonesia/eu_idnpca_en.pdf 83
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Invigorating The Indonesia-EU Partn
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Abbreviations ACP Africa, Caribbean
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SUMMARY OF THE TERMS OF REFERENCE F
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CONCLUSIONS AND RECOMMENDATIONS 7
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often be accentuated by the combina
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20. Furthermore, in order to increa
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Relations between Indonesia and the
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eaching almost 7% in the last quart
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The existing EU and Indonesia allia
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Architecture of the CEPA 20 4 The V
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Market Access in Goods 22 5
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24 Members have an effective opport
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Services are of increasing importan
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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 36 and 37: Competition policy is a necessary m
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 86 and 87: In the last decade, the expansion o
Page 88 and 89: Indonesia’s automotives industry
Page 90 and 91: 88 Rapidly expanding services secto
Page 92 and 93: There is remarkable scope for coope
Page 94 and 95: In Indonesia the processed foods in
Page 96 and 97: Electronics is Indonesia’s larges
Page 98 and 99: One of the fastest growing segments
Page 100 and 101: The textile, clothing and footwear
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Page 104: Delegation of the European Union In
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Vision Group Report: Invigorating the Indonesia-EU Partnership

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