Pages 6 and 9 have been entirely redacted according to Art 4.1(a) of Regulation 1049/2001
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if
o be u >dated after the 4tli round ends 23 Feb
OBJECTIVE
• Convey the outcome of the fourth round of negotiations for an FT A/CEPA which have been
held from 19 to 23 Februru.y in Solo.
• Reiterate that the EU is committed to achieve the ambitious results that both sides committed
to in the scoping paper. It is therefore key that Indonesia
o reconfoms its mandate to negotiate in all relevant areas, including government
procurement
o shows confidence building measures - or at least struts reducing- the high number
of protectionist measures which hamper access to trade and investment in
Indonesia.
• Reiterate the Commission's position on palm oil in general and the recast of the RED
directive and palm oil biofuel (if raised).
SCENE SETTER
General
Approaching the regional elections in 2018 and the presidential ones in April 2019, Indonesia
has been entering into electioneering mode. In trade policy, Indonesia's declru.·ed commitment to
negotiate and conclude free trade agreements with various partners around the world ( cmTent
priorities ru.·e Australia, EFT A, RCEP followed by the EU) has not yet translated into genuine
openings nor into the implementation of more liberal policies. Indonesia's declared willingness
to conclude an FTA with the EU in 2019 is not realistic.
Art 4.l(a)
On the FTA
FTA (CEPA, Indonesian jargon) negotiations with
Indonesia were officially launched on 18
July 2016. The fourth round was held on 19-23 February 2018.
So far negotiations with Indonesia have allowed to achieve concrete positive outcomes in a
number of chapters of the agreement (in particulru.· IPR and Gis, TDI, RoO), but have also
identified divergent viewpoints in areas like exp011 duties, energy and raw materials, SOEs, ICS
and SPS matters.
Art 4.l(a)
At the fomth round both sides intend to exchange their initial tariff offers. Text-based
negotiations ru.·e to continue on all chapters.
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• [Also, the apparent lack of a clear mandate to negotiate
government procurement market access, a key element of the FTA
for the EU, casts a shadow over the whole process.]
• Where does Indonesia's internal process stand in this regard? It is
crucial that we deliver in these negotiations on what we jointly set
as our ambitions.
• During the round in February we have exchanged initial tariff
offers.
• We hope we will soon be in a position to exchange also offers in
services and government procurement.
On protectionist measures
• Any ambitious outcome in FTA negotiations would be impaired by
the existing high number of trade restrictive measures Indonesia
applies and continues to issue.
• Pervasive local content requirements (in telecom, energy, oil and
gas, retail, franchising), a still unclear Patent law, various layers of
non-automatic and non-transparent import licensing, a pending
halal law which could bring to a halt trade in various sectors, fees
on SPS audits of establishments … are only some of the issues
where we want to see confidence building measures.
• Only a friendly trade and investment climate can bring increased
mutual benefits for our people.
On BIT – Investment protection
•
Art 4.1(a)
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• Art 4.1(a)
On Palm oil -
General
•
Art 4.1(a)
On the EP vote on the recast of the RED
• As part of the "Clean Energy for all Europeans" package, presented in
November 2016, the Commission proposed a revision of the EU
Renewable Energy Directive after 2020.
• This aims at reducing the carbon footprint of the transport sector,
including by limiting the contribution of crop-based biofuels
("conventional biofuels") and by promoting the use of waste and
residue in biofuel production ("advanced biofuels").
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Art 4.1(a)