Ref. Ares(2019)1598515 - 10/03/2019
TERMS OF REFERENCE
VISION OF 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 Indonesia, the following are proposed
For EU side (to be confirmed)
The Group would form its own assessments and judgements on the basis of existing data and
The work of the vision group will be prepared and supported by a joint EU-Indonesia project
group. For the EU Commission art 4(1)(b)
from the EU's Jakarta delegation will be part of
the group. For the Indonesian Ministry of Trade… (members to be confirmed).
The Project group will work under the guidance of the Vision group and will
1. Arrange and coordinate all logistics and ensure reports of meetings.
2. Provide relevant input for the Vision Group discussions. This includes primarily
relevant trade and investment data and analysis, and existing studies 1
3. Synthesise the views of the Vision Group in a draft report, to be endorsed by the
Vision Group, on
the potential for further development of EU-Indonesian trade and investment
the strategic parameters and elements for a comprehensive vision for the
enhancement of EU-Indonesia trade and investment relationship
possible recommendations and proposals to relevant parties (GoI, EU,
Business Community, academia) for the full realisation of this trade and
investment potential, and the implementation of the vision.
The exercise should be contained in a reasonable space of time (not to exceed the 12 months
timeframe) and start with a meeting on modalities (with a few members) on 21 September
1 In particular the studies on “Trade and Investment between EU - Indonesia: Opportunities and Obstacles" and
the complementary study “Indonesian Trade with the EU: Opportunities and Challenges”.
The two studies will
in combination serve as one, but not the single, input for the Vision Group in its work on exploring ways of
enhancing bilateral trade and investments.
From there onwards, the following meetings are proposed as well as a conference to present
the findings, namely:
Jakarta, 2 December 2010 (in connection with EIBD) –First brainstorming and
discussion with business
Brussels, end February 2011 – Full meeting on all issues, followed by (March
2011) drafting of the Vision groups report
Jakarta, April 2011 – Finalisation of the report
Jakarta/Brussels May 2011
- A one day conference presenting the outcome of the
Vision Group to stakeholders.
Indonesia has gained an important role in the G-20 and other international fora as a
manifestation of an impressive job in keeping the economy stable and recording the largest
growth in Southeast Asia in 2009. It is the largest and considered the most stable democracy
in Southeast Asia. On the other hand the EU, with its 500 million citizens, constitutes a large
and important market for Indonesia. It is also the source of investments and trade giving rise
to fair employment conditions, sustainable development and innovative technological
In 2008, Indonesia exported 13.5 billion euro worth of goods to the EU, making the EU its
biggest export destination of non-oil and gas exports. Indonesia imported goods from the EU
worth 6 billion euro. These flows remained stable even during the global crisis last year
(bilateral trade amounted to a total of 17 billion euro) and growing by an annual average of
6% between 2004 and 2008.
The scale of this trade and investment relationship between the EU and Indonesia generates a
wide range of new opportunities which we could exploit more. EU and ASEAN started
negotiations on a deep and comprehensive FTA in May 2007, but two years later the
negotiations were paused due to differing perceptions and ambition levels. The EU has,
following this halt in the negotiations, explored the possibility of negotiating bilateral FTAs,
with a view of at a later stage create a region-to-region architecture and started negotiations
with Singapore in March 2010. Vietnam and Malaysia have also shown interest for a bilateral