Ref. Ares(2018)5979569 - 22/11/2018
Meeting with the members of the EU-Indonesia Vision Group
1. Explain the unavailability of the Commissioner to meet the Vision Group and provide
political support and impetus to its work
2. receive an update on the work of the EU-Indonesia Vision Group and potential
3. express interest of the Commissioner to hear the recommendations of the group,
possibly during his visit to Jakarta in May 2011
On behalf of Commissioner De Gucht, who is unfortunately unavailable to meet you
today for unavoidable engagements, I welcome you to Brussels for this second meeting of
the EU-Indonesia Vision Group.
The Commissioner is very much supportive of this exercise launched by our President in
December 2009 and he is looking forward to receiving your recommendations, possibly
during his forthcoming visit to Jakarta next May.
We have a mutual interest in pursuing closer commercial ties, with two-way trade now
around 20 billion euro, and the EU constituting the largest market for Indonesian goods,
excluding oil and gas. Significant further opportunities exist for Indonesian companies in
the EU market. As our trade is complementary there is a lot of scope to further increase
Also in terms of investments we can contribute much stronger to each others’ economies:
Even though EU is the second largest export partner for Indonesia and arguably the
largest source of investments, the relative share of EU in terms of Indonesia’s trade is
recently dropping and the EU investments only represent 1.5% of EU investments to
I understand that your very first meeting in December went on very well in a positive and
constructive atmosphere and I would be interested in hearing more from you on the main
issues discussed and how you see your work progressing.
What are the main areas you have identified so far as key for enhancing our relations? As
you know, on a strategic and longer term perspective, the Commission is currently
offering to engage in exploratory talks for a bilateral agreement with those ASEAN
countries which are ready to negotiate a comprehensive Free Trade Agreement.
Have you already explored the possibility of a bilateral agreement? What would be the
scope and the content of a possible agreement that would find the support of different
stakeholders in Indonesia? What would be the key differences of an agreement with the
EU compared to, for instance, with Australia or Japan?
Commissioner De Gucht is looking forward to receiving the final recommendations of
your work and I would like to thank you all for your good work.
The EU-Indonesia Vision Group has the task to examine ways on how to enhance bilateral
trade and investment relations (see the ToR in Annex) and started the preparatory work in
September 2010. The first meeting on substance took place on 2nd December 20010 in
Jakarta and was co-chaired by two well know academics: Professor Pelkmans (CEPS
Brussels) and Professor Djisman Simandjuntak (Prasetiya Mulya Business School).
The idea of a creating a Vision Group to enhance trade and investment between Indonesia
and EU was launched in December 2009 when President Yudhoyono met President Barroso.
Soon after, the Indonesian Trade Minister Mari Pangestu appointed 10 members for the
Indonesian side coming from different line ministries, private sector (the powerful chamber
of commerce, Kadin) and academics. It was agreed that this group should focus on
opportunities more than obstacles and to advise the governments by June 2011.
From the EU perspective, this joint group will be instrumental in keeping engaged the
Indonesian Government in a period during which the risk of increasingly inward looking
policies is very high and will contribute bringing the trade dialogue (often focusing on trade
irritants) to a more constructive level. As there is already an invitation to Indonesia to start
FTA talks (following the ‘pause’ in ASEAN talks, the main reason for this exercise is for the
Indonesian key players (minister of trade, chamber of commerce Kadin, etc.) to ensure
enough domestic, political, support exists for a potential deal.
A positive sign of the Indonesian commitment to this exercise was the fact that Minister Mari
Pangestu decided to personally welcome the group in Jakarta and have a discussion on its
goals and ambition. This initiative gave a boost to the members and contributed to the
positive and constructive atmosphere of the first meeting. Given this positive dynamics, the
objective of delivering constructive recommendations before the summer is very much
The first meeting resulted in substantive and lively discussions and concluded on the need of
further research work to support the recommendations. The results of these researches will be
presented during the second meeting scheduled for 22/23 February 2011 in Brussels. The
main objectives for this meeting are as follows:
1. To find out if a finalization of the Vision Group process / recommendation by end of
April is feasible, to ensure a constructive set of recommendations can be delivered on
4 May 2011 in Jakarta.
2. To clarify the kind of scenario the VG-members would want to go for (PCA, PCA+,
FTA, CEPA, etc.) and in case of CEPA, what the 'add-ons' should entail more
To ensure the Indonesian VG-members have received the necessary feedback
regarding the issues that came up during the first meetings (such as: potential losers,
opportunities, capacity building, etc.)
[Art. 4.1.b] – DG Trade C3-
ANNEX - TERMS OF REFERENCE:
A VISION FOR ENHANCING EU-INDONESIA TRADE AND INVESTMENT
When the Indonesian President Susilo Bambang Yudhoyono met with the European
Commission President José Manuel Barroso in December 2009 they discussed ways of
enhancing our bilateral ties. The two Presidents agreed that trade and investment is an area
where the bilateral relationship has great potential to develop, and on the need to explore
ways to strengthen these ties. The two leaders decided to set up a "Vision Group"
examine how to increase trade and investment between Indonesia and the EU. The expected
output is a strategic paper (vision) with recommendations to Ministers (including on the
potential for a comprehensive Free Trade/Economic Partnership Agreement). This Group
should be constituted by eminent persons from both sides consisting of members of the
respective Governments, business and academia.
The Specific Objectives of the Vision Group are:
To provide a strategic view of EU-Indonesia trade and investment relations and
identify on what basis
EU-Indonesia trade and investment relationship can best be
enhanced in an innovative way.
To identify opportunities for fostering trade and investment between EU and
Indonesia, bearing in mind the market characteristics and potential, evolution of
bilateral flows and the challenges for realisation of this potential
To provide recommendations to relevant parties (GoI, EU, business community,
academia) for the full realisation of this trade and investment potential
In this context, to explore the feasibility of a Free Trade/Economic Partnership
Agreement between EU and Indonesia.
For the EU
Prof. Jacques Pelkman (CEPS and College of Europe)
Julian Wilson (EU Delegation Jakarta),
(ING), Jakob Sorensen (Maersk) (Indonesia based), Pascal
Djisman Simandjuntak (Executive Director of business School Prasetya
Ministry of Trade),
Ministry of Industry),
Ministry of Fisheries),
Investment Coordination Board BKPM),
Ministry of Agriculture)
Gajah Mada University),
University of Indonesia.