This is an HTML version of an attachment to the Freedom of Information request 'Stakeholder contacts and internal communication on the EU-Indonesia Free Trade Agreement (2)'.



Ref. Ares(2017)4972724 - 11/10/2017
Ref. Ares(2019)3157032 - 13/05/2019
To: 
KONIG Helena (TRADE); GUEREND Vincent (EEAS-JAKARTA); 4.1(b)
 
 
 
Cc: 
4.1(b)
 
Subject: 
FYI/Report of the meeting between DDG Korte and the IDN Federation of 
commerce and industry, 9/10/2017  
 
At today's meeting with Kadin , the Indonesian federation of commerce and 
industry, DDG J. Korte (accompanied by Ambassador V. Guerend,  4.1(b)
 
 and myself) had an exchange with KADIN's main representatives, 
including its president 4.1(b)
.  
Kadin visited Brussels as part of a delegation accompanying vice-president Kalla 
on occasions of the opening of EUROPALIA.  
 
The meeting clearly concluded that there is a small window of opportunity now 
for making progress on the CEPA negotiations
, as mid-2018 will witness 
Indonesia's regional elections (170). Presidential elections will take place in 
early 2019, at the same time as the renewal of the EU institutions mandates and 
the entry into force of Brexit negotiations. Times ahead will therefore be 
unstable and may dilute the perspective for a quick conclusion of negotiations.  
 
DETAIL 
 
Main points: 
 
KADIN: 
•  presented itself as being very close to the Government of Indonesia and 
at the same time as an independent body. With a very high number of 
offices in Indonesia– and since today a representation in Brussels to help 
companies invest- it is mandated to provide input to Government 
policies and at the industry's level.  
•  stressed the importance to attract foreign investors to accomplish the 
ambitious infrastructure project (430 bn U$)  launched by Indonesia; 
•  While stressing that Indonesia is currently negotiating 16 FTA, KADIN 
hinted at  the difficulty of the task and the need to see the private 
sector involved in the CEPA negotiations from the beginning
. Support 
to develop a  "socialization" process" was highlighted as much as the 
need to identify needs for the implementation of the agreement (N.B. 
KADIN appears to corroborate the Government CEPA negotiator's stance 
on the chapter on economic cooperation and capacity building and the 
need to identify specific projects for support, while securing important 
EU support in this regard); 
•  highlighted that the rationale of Indonesia's commitment to be on the 
global trade scene is motivated by the fact that Indonesia is lagging 
behind  countries such as Vietnam in FTAs negotiations
. It stressed that 
there is currently continued  political  will to pursue CEPA negotiations.  


•  An ad hoc task force is overviewing the implementation of the reform 
packages issued by the Government (the labour law fixing the minimum 
wage has just been issued).   
 
DDG Korte: 
 
•  provided an overview of the key axes of the current EU trade policy and 
its state of play; 
•  stressed the need for KADIN's support in  keeping the Government on 
the reformist track. There are many barriers, while at the same time the 
potential for trade and investment is huge.  
•  The EU is also negotiating various FTAs, creating competition and the 
need to fix priorities. Against this background, keeping negotiations 
active with Jakarta is important

•  Stressed the need to ensure the ownership of the agreement and put in 
place the adequate structure, where the EU an provide help. 
•  Asked about the EU stance on palm oil, DDG Korte hinted at the EP 
resolution and the Commission's more nuanced stance. 4.1(a)
 
  
 
 
Best regards,  
4.1(b)
 
 
 
 
 
 
4.1(b)
 
 
 
 
European Commission 
DG TRADE 
Unit C2 “South and South East Asia, Australia, New Zealand” 
4.1(b)
 
B-1049 Brussels/Belgium 
4.1(b)