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)