G20 Summit
Ref. Ares(2018)5979569 - 22/11/2018
Meeting with President of Indonesia Yudhoyono
Cannes, 4 November 2011
Meeting with the President of Indonesia, Dr Susilo
BambangYudhoyono
Scene setter
You last met President Yudhoyono in December 2009 in Brussels on his
way to the Copenhagen Climate Change Conference. Your discussions
focused on the potential for increased bilateral trade and investment and
on the importance to reach a climate agreement.
Both of you tasked a joint vision group of eminent persons to identify
ways to expand trade and investment. The vision group has
recommended starting negotiating a Free Trade Agreement that will be
called Comprehensive Economic Partnership Agreement. (CEPA),
encompassing trade, investment and capacity building. On climate
change, however, follow up has been less explicit. Timely therefore to
stress our common interest to shift to low carbon economies and share
views and expectations for Durban.
President Yudhoyono began his second and last five-year term in
October 2009 following a convincing victory in presidential elections.
However, in Parliament, his Partai Demokrat (PD) coalition leads a
fragile majority coalition. With his popularity declining, he reshuffled his
government in October, asserting a greater degree of control over key
portfolios.
Competent
macro-.economic
management
by
his
Administration deserves credit. But his tendency to seek political
consensus by making concessions has hampered his capability to
address corruption and push for more reforms in the face of obstruction
by interest groups.
President Yudhoyono did not attend the ASEM Brussels Summit in
October 2010 for domestic reasons. You were scheduled to meet him at
the G20 in Seoul last year but he had to stay in Indonesia due to a major
earthquake and volcanic eruption. On that occasion, ECHO released
immediate humanitarian aid of 1.5 M€.
.As chair of ASEAN this year, Indonesia has tackled with aplomb
important foreign policy challenges like the Cambodia/Thai border spat,
the transition in Myanmar and the tensions in the South China Sea,
where Indonesia persuaded China to agree a framework for discussions
with the ASEAN countries.
Objective(s)
Emphasize EU commitment to a strengthened partnership with Indonesia
as an emerging global actor, moderate Muslim country and possible
strategic partner.
(cf. Partnership and Co-operation Agreement signed in
2009)
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Seek President Yudhoyono’s endorsement of the Vision Group’s
recommendations for a Comprehensive Economic Partnership and
Cooperation Agreement for his administration to proceed with the next
step of scoping and negotiations.
Call on Indonesia to agree to a "roadmap" in Durban towards a truly
global agreement also covering emerging economies and the US – as
simply continuing Kyoto will not be enough.
Seek Indonesia’s support on the conclusions agreed at the European
summit on the resolution of the euro area debt crisis and on the proposal
for a financial transaction tax.
.Welcome future collaboration in counter terrorism through EU funded
cooperation and a regular dialogue on counter terrorism planned to begin
next year
Congratulate Indonesia on a successful year as Chair of ASEAN. Seek
his views on South China Sea developments. art 4(1)(a)
Line to Take
Underline the importance we attach to relations with Indonesia as a
regional partner and like minded voice on global issues (cf. G-20, climate
change, counter terrorism)
Underscore the relevance of EU-Indonesia ties and of capitalising on the
Partnership and Co-operation Agreement to intensify political
engagement and promote cooperation in a wide range of sectors.
Reaffirm the EU interest to increase bilateral trade and investment and
reiterate the EU willingness to start negotiations of a Comprehensive
Economic Partnership Agreement, including free trade, investment and
capacity building support.
Propose that President Yudhoyono gives his political go-ahead to the
launching of negotiations in order to start with the technical work as soon
as possible.
Stress common interest in moving towards low carbon economies.
Appreciate Indonesia’s efforts to reducing emissions and its role in the
international negotiations in view of making significant progress in
Durban. .
Welcome Indonesia's engagement in the G 20 process and congratulate
on the country’s economic progress. Ask for support on Europe's
proposal on the financial transaction tax and on the need of the IMF to be
adequately equipped to effectively play its role in crisis prevention and
resolution.
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Meeting with President of Indonesia Yudhoyono
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Meeting with President of Indonesia Yudhoyono
Cannes, 4 November 2011
Speaking Points (max 2 pages per subject in font arial size 24)
Bilateral Relations
I welcome the very good state of our
bilateral relations. The Partnership
and Cooperation Agreement (PCA)
signed in November 2009 gives us a
good boost to build on that. We
expect the PCA to be ratified in early
2012.
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Meeting with President of Indonesia Yudhoyono
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We are working effectively in a wide
range of issues: trade and investment,
climate change, counter terrorism,
human rights, interfaith dialogue. I am
impressed by the fact that we initialled
last May an agreement to prevent
illegal exports of timber and improve
forest governance. We also signed a
horizontal aviation agreement last
June
that
removes
nationality
restrictions
in
the
bilateral
air
agreements between EU Member
States and Indonesia. We continue
carrying
out
our
development
cooperation mainly, in the education,
good governance and trade support
sectors (€ 450 million for the period
2007-2013)
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We are increasingly faced with global
challenges, the global economic
situation, the debt and financial
pressures in the EU, climate change,
religious intolerance, terrorism, etc.
We have therefore to work more and
more together on the multilateral
stage, not least in the G-20.
Trade and Investment
We have a mutual interest in pursuing
closer commercial ties. Our two-way
trade will reach 23 billion euro in
2011. Our trade is complementary
and both the EU and Indonesian
markets offer a big potential to each
other.
I am very pleased that the Vision
Group we tasked two years ago to
present recommendations to enhance
our trade and investment relations
has recommended that we quickly
start working on a Comprehensive
Economic
Partnership
Agreement
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(CEPA), (a broad version of a free
trade agreement).
We are ready to start the preparatory
work necessary before the launch of
formal
negotiations
(so
called
"scoping exercise").
What is your view on this process?
Are you ready to embark on this
process or do you need more time for
internal consultations? Should we
instruct our trade Ministers and
officials to move forward with the aim
at launching negotiations early next
year?
Messages on WTO (in case this meeting takes place
before the summit)
Continued stalemate on Doha creates
a vacuum in the WTO. This is a major
risk for the global economy and the
multilateral trading system.
We need to support an active WTO
negotiating
agenda.
We
should
deliver results on Trade Facilitation,
non-tariff barriers, dispute settlement
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review and other issues that can
move despite the industrial tariff
impasse.
We should also be open to consider
what the WTO can do to address
energy, food security, investment and
other emerging global challenges.
ASEAN, East Asia Summit, South China Sea
Let me congratulate you on your
successful chairmanship of Asean.
You have been faced with difficult
challenges:
the
Thai/Cambodia
border conflict, the tensions with
China and some Asean Members in
the South China Sea. You persuaded
China to agree a framework for
discussions with Asean. How do you
see this issue evolving? We hear
that some Members want to raise
this issue at the East Asia Summit
The
EU has a long standing
partnership with ASEAN and we
want to develop it further. We are
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advancing in negotiations for
Partnership
and
Cooperation
Agreements as well as for Free
Trade Agreements. We want Asean
to succeed in its integration efforts.
What is you assessment of the
Asean progress towards economic
integration by 2015?
We welcome the open character of
the
East
Asian
Regional
Architecture, with Russia and the
US taking part for the first time in
the East Asia Summit. The EU has
much to offer to East Asian
regionalism. We want to deepen our
engagement with regional fora.
What are your expectations from the
East Asia Summit on 19 November?
Counter-Terrorism,
I welcome that our Administrations
have been carrying out preparatory
work towards the establishment of a
regular EU-Indonesia political dialogue
on counter terrorism. This is in line with
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our
Partnership
and
Cooperation
Agreement
which
includes
counterterrorism as one of the key
cooperation sectors and with the
ASEAN-EU
Joint
Declaration
on
Cooperation to Combat Terrorism in
2003.
I look forward to the initiation of this
crucial dialogue at the right level in
2012.
I am also very glad that we are about to
begin a 2 million euros cooperation
program
with
south
East
Asian
countries in this field. Through this
regional program, the EU will work with
the
Indonesian
National
Counter
terrorism Agency to assist in enhancing
its
coordination
capacity
and
in
addressing the issue of radicalization
especially of the young.
Defensive Points
Question? Following Mrs Giorgieva’s
visit in September, Indonesia would
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like to see closer bilateral and Asean
cooperation
on
Disaster
management.
We are looking to enhance our
cooperation with Asean on disaster
response as discussed recently by
Commissioner Georgieva with Asean.
We are looking at concrete activities in
the Asean framework, such as experts’
visits, comparative studies between EU
and
ASEAN
civil
protection
mechanisms as well as the role Asean
may play in the various meetings next
year celebrating the 20th birthday of the
EU Humanitarian Aid Agency (ECHO).
We count for all this with the help of
Indonesia and its extensive experience
on disaster management.
Question?
Why
Europe
doesn't
engage
to
a
second
Kyoto
commitment period?
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On the legal form of the future climate
regime, the EU is attached to a rules-
based approach, and is open to a
second commitment period under
some
clear,
strict,
conditions.
Conditions were clarified in the recent
Environment Council Conclusions.
The EU cannot commit legally to a
second Kyoto commitment period
alone – this would not solve the
environmental problem, as the EU
represents only around 11% of global
emissions.
The EU openness to a second
commitment period is conditional to
the following:
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o The
UN
Climate
Change
Convention
should
adopt
a
roadmap for a multilateral legally
binding rule based framework to be
completed by a clear timeline
taking into account the review
process of the Convention (i.e.
2015). Under this framework, all
major
economies
shall
take
mitigation commitments.
o Existing Kyoto rules should be
improved,
to
address
its
weaknesses
and
ensure
environmental integrity
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In order to agree to such a roadmap
for a multilateral legally binding rule
based framework in Durban, we need
Indonesia's leadership.
We welcome the fact that Indonesia
presented its pledges for emission
reductions in the context of the
Cancún Agreements. We encourage
Indonesia to continue to engage in a
transparent dialogue on its pledges in
the UNFCCC context.
Question? We would like to see a
liberalisation of the Schengen visa
policy
to
Indonesian
passeport
holders.
I am in favour of easing the circulation
of bona fide persons between the
European Union and Indonesia.
I understand that your concern is
mainly about the current requirement
of prior consultation among Member
States
which
sometimes
delays
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issuing Schengen visas and the
treatment of diplomatic passports.
These two issues are the competence
of Member States. Nevertheless, the
Commission services in charge of
migration issues are trying to make
progress on this particular case. I
understand that they will convene a
technical meeting with Indonesian
counterparts in the near future to look
at the possibilities for practical
improvements on visas for holders of
Indonesian ordinary and diplomatic
passports.
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Background
Although a secular country, with 238 million people, Indonesia has the world’s
largest Muslim population. After India and the USA, is the third largest
democracy. A middle-income country. G-20 member and influential within the
Organization of the Islamic Conference. Major CO2 emitter because of rapid
and extensive deforestation.
Indonesia has gone through a democratic transition in little more than a decade
(since Suharto's overthrow in 1998). In 2009, peaceful parliamentary and
presidential elections entrusted President Yudhoyono with a second (and last)
five year mandate. This sets an example for the region and for Myanmar in
particular.
Indonesia has become more prominent in international organisations in recent
years. It was elected this year to the UN Human Rights Council and takes pride
in its work in the G20. It is the biggest country within ASEAN and its driving
force. It holds the Asean chairmanship this year and has been performing quite
efficiently so far. It has played a significant role in encouraging the US to
increase its engagement in South East Asia. Indonesia seeks balanced
relations with the US, China and Japan. Russia remains an important provider
of arms and civil nuclear technology. The EU has a lower priority.
Trade. The EU is a major trade and investment partner and there is huge
potential to develop that further. The bilateral trade is complementary, not in
competition and it exceeds EUR 20 billion per year, with Indonesia enjoying a
EUR 7 billion surplus; the accumulated investment is over EUR 50 billion
Cooperation and humanitarian assistance, The EU is a major donor and has
reacted promptly in cases of natural disasters with substantial assistance
following the tsunami in 2004 and the 2006 and 2010 earthquakes. The EU has
also been funding for the last 12 years community-based disaster preparedness
activities in Indonesia, through its Disaster Preparedness Programme. An
amount of 200 million euro was allocated for 2011-2013 to continue support on
education, environment and climate change, trade and investment capacity
building and good governance.
Aceh. The EU played a crucial role in securing a peace settlement in 2005 and
continues to support programs aimed at peace consolidation through the
Instrument for Stability. (The latest contribution being a 3.5 million EUR to
support the efforts of ex-President Ahtisaari’s Crisis Management Initiative
(CMI), addressing remaining weaknesses linked to the peace deal and
reinforcing the key relationship between the Provincial Government and the
Districts).
EU Policy: The EU wants closer relations with Indonesia, which is considered
as a possible strategic partner. A Partnership and Cooperation Agreement
PCA) was signed in November 2009 in Jakarta, the first in S.E. Asia. The
ratification by MS is expected to be completed in early 2012. Meanwhile, both
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sides are already working in some of the fields of cooperation foreseen in the
PCA like counter terrorism, migration and visa issues, trade, forestry. Political
dialogue is already well developed. The HR/VP has met bilaterally with Minister
Natalegawa in various occasions in the margins of regional or international
meetings. An annual human rights dialogue held already twice is already taking
root in the framework of bilateral relations. Senior Officials (SOM) and Political
Dialogue meetings take place annually. The next SOM will take place in
November in Indonesia.
Climate change and environment. Indonesia is among the 10 top greenhouse
gas emitters in the world mainly due to deforestation, land use change,
peatlands degradation and forest fires. Key contributors also are the oil palm
and the pulp and paper industries. The Indonesian Government is increasingly
aware of the global challenge of climate change and the country's own
vulnerability. If no action is taken Indonesia's emissions are expected to
increase by about 156% by 2030The country's target is to achieve a 26%
reduction of GHG emissions by 2020 against Business As Usual (and a
reduction up to 41% if international support is provided).
Indonesia has moved forward in the direction of establishing a low carbon
development strategy, in drafting a legal framework for REDD+ and forest
carbon projects. However, horizontal and vertical government coordination on
these issues is very weak.
The EU and Indonesia initialed last May a voluntary partnership agreement
(VPA) to tackle the problem of illegal logging and to improve market
opportunities for Indonesian timber in response to new market regulations in the
EU, the US and other consumer markets. The VPA sets the laws applied to the
Indonesian forests sector and provides for control and verification procedures
ensuring that timber and timber products exported from Indonesia to the EU are
legal.
EU Airline operating ban. After the removal of several airlines from the EU
black list, Garuda resumed flights to Amsterdam last year. Efforts continue to
make progress in removing the smaller airlines. An EU aviation agreement was
signed last removing nationality restrictions.
Relations with the US: The US has noticeably increased his engagement with
Indonesia and the Asean region. Last year the US resumed co-operation with
Indonesia's army special forces (Kopassus), highlighting their improved record
on human rights in recent years, and underlining the wish of the US to
strengthen its alliances in South-east Asia. President Obama visited Indonesia
last year and is scheduled to attend the East Asia Summit on 19 November in
Bali.
Short and up-to-date description of the current economic and political
situation in Indonesia
Political. President Yudhoyono (SBY) has succeeded so far in holding together
a disparate and fragile six party coalition. art 4.1 (a)
He is perceived as unable to address corruption and proceed with
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reforms over the vested interests of various groups. His popularity has declined
significantly – to 38 %. He reshuffled his Cabinet in October aiming at
consolidating control of key portfolios and at improving relations with the main
coalition party.
The economy is booming powered mainly by the commodities boom and a
burgeoning middle class, with an estimated GDP growth of 6.4 % in 2011;
exports increased by 33% in the first half of 2011, inflation is low and foreign
investment has substantially increased.
Aceh and Papua. Decentralisation
has been a major trend in Indonesia,
accompanied by special autonomy for the provinces of Aceh and Papua.
However, the political situation in both provinces remains turbulent. In Aceh,
tension is growing over the preparations for the local elections for Governor and
mayors set for 24th December. Partai Aceh, the main political force is
threatening to boycott the polls if independent candidates are permitted to
stand. This aims at preventing their incumbent rival Governor Irwandi to run for
a second term.. The EU is still funding various projects to support the
consolidation of the peace process including the work by President Ahtisaari to
promote dialogue among stakeholders and solve contentious issues stemming
from the implementation of the Helsinki peace agreement that ended the
conflict. Papua is a volatile example of the complexities of special autonomy.
There was positive movement on Papua earlier in the year, with the
government's decision to form a new
Unit for the Acceleration of Development
in Papua and West Papua and reasonable prospects for discussions between
the central government and Papuan representatives. However, the violent
break-up by law enforcement authorities in late October of the Third Papuan
Congress – which had provocatively attempted to declare independence – has
set back prospects for a settlement.
Continued terrorist threat. Indonesia has made progress in tackling terrorism.
Jemaah Islamiyah has been significantly dismembered In addition to killing
several key ringleaders, over 600 suspects have been arrested and more than
450 prosecuted since 2002. Nonetheless, the recent suicide bombing of a
church in Solo illustrates that the terrorist threat remains pronounced.
art 4.1 (a)
ASEAN. Indonesia has won plaudits for its skilful Chairmanship of ASEAN, so
far. (role in Cambodia/Thai border spat and on tensions in the South China Sea
Relevant facts and figures
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Indonesia
Population: 238 million
. Largest Muslim country in the world
15th largest world economy 0
GDP per capita : US$ 3000
GDP growth: 6.4 % (Forecast for 2011)
Public Debt: 28 % of GDP.
Inflation: 4.6%
Population below poverty line: 12.5 % (30 million)
Unemployment: 7.4% (informal employment accounts for 69 % of jobs)
Trade: Two way trade in goods and services amount to 20 billion euro. EU is the
second largest importer, after Singapore, of Indonesian manufactured goods.
Indonesia enjoys a 5 billion trade surplus.
Investment: FDI over 16 billion dollars euro (2010). The EU is the first largest FDI
investor.
Executive: The Presidency is the highest executive office, with direct legislative powers
and authority to appoint the cabinet. The President, Susilo Bambang Yudhoyono who
won a second mandate in the July 2009 elections, is the Head of State
National legislature: The People’s Consultative Assembly (MPR) consists of a 550-
member House of People’s Representatives (DPR) and a 128-member Regional
Representatives’ Council (DPD)
National elections April 2009 (DPR). July 2009 (presidential). Next elections: 2014
National government: In the April 2009 election to the DPR, the Democratic Party
(PD) of President Yudhoyono emerged as the largest party, with 26.8% of the seats in
the DPR. Golkar came second, with 19.1% of the seats, followed by the Indonesian
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Democratic Party-Struggle (PDI-P), with 17%. Six other parties achieved the 2.5%
share of the vote needed to enable them to take up seats in the DPR. President
Yudhoyono’s government contains representatives of the Democratic Party and a
coalition of Golkar, PAN, PKS, PKB and the PPP.
Main political organizations: There are three nationalist secular parties, the PD,
Golkar and the PDI-P. The other main parties have an Islamic orientation; they are
the United Development Party (PPP), the National Awakening Party (PKB), the
National Mandate Party (PAN) and the Prosperous Justice Party (PKS)
Contact(s):
(EEAS)
art 4.1 (b)
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art 4(1)(b)
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