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)'.




Pages 6 and 9 have been entirely redacted according to Art 4.1(a) of Regulation 1049/2001
 
BRIEFING  0  Subject: Indonesia 

Ref. Ares(2020)3403390 - 29/06/2020
0  Event: AEM-EU Trade Commissioner Consultati.  Ref.Ares(2018)1415713- 4/03/2018 
0  Date:  1-2 March 2018 
Origin: DG TRADE  o  Place: Singapore 
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. 
1/9 


Art 4.1(a)

Subject: Indonesia
L  BRIEFING  Event: AEM-EU Trade Commissioner Consultations
Date: 1-2 March 2018
Origin: DG TRADE 
Place: Singapore
• [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)
3/9


BRIEFING  0  Subject: Indonesia 

0  Event: AEM-EU Trade Commissioner Consultations 
0  Date:  1-2 March 2018 
Origin: DG TRADE  o Place: Singapore
•  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").
4/9 






Art 4.1(a)