Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
Ref. Ares(2019)1598515 - 10/03/2019
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
Briefing note
Scene setter
Mr. Mahendra Siregar, a career diplomat who has previously been advisor to two
Coordinating Ministers for Economy, has been appointed Indonesian Vice Minister of
Trade on November 2009. He is also the Sherpa of President Yudhoyono for G20
meetings.
Mahendra already travelled to Brussels last April to lead a delegation of businessmen
and exporter Associations in the palm oil, cocoa, and textile sectors. In that occasion he
met Commissioner De Gucht's Head of Cabinet (report attached).
VM Siregar is travelling again to Europe, this time together with the Vice Minister for
Agriculture Bayu Khrisnamurti and representatives of the Indonesian Palm Oil
Association (Gapki), to attend a forum on palm oil financing organized by World Bank
Group in Frankfurt on 31 August and 1st September.
Both Vice Ministers are looking for reassurance about the continuity of exports of crude
palm oil (55% of EU imports of palm oil are supplied by Indonesia for a value of 1.5
billion euro in 2009 or 12.8% of total Indonesian export to the EU) and the non
discriminatory aspect of the Renewable Energy Directive (RED).
A meeting with DG for Energy Philip Lowe has also been scheduled for 2nd September
in the morning and will largely focus on the technical aspect of the implementation of the
sustainability criteria of RED.
You can use this occasion to refer to the recent Ministerial meeting held in Da Nang that
agreed to strengthen the dialogue on trade and investment issues (including the launch
of the Vision Group later this year). Finally, if time allows, you can suggest an exchange
of views on the perspectives of the Doha round in view of the next G20 meeting in
Seoul.
Objective
out of scope
Stress DG Trade's resolve to improve trade and investment relations with Indonesia
including through the offer for a bilateral agreement.
1/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
Speaking Points
out of scope
2/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
Bilateral trade
There is a mutual interest in pursuing closer commercial ties, with two-way
trade now exceeding 20 billion euro, and the EU constituting the largest
market for Indonesian goods, excluding oil and gas. Significant further
opportunities exist for Indonesian companies in the EU market.
We understand Indonesia is not yet ready to embark in an FTA negotiation,
but we welcome the initiative of Minister Pangestu (endorsed also by our
Presidents) to launch a joint Vision Group to produce recommendation on
how to further develop our trade and investment relations. I am happy to hear
that our Ministers approved the content and set up a timeframe for the Vision
Group last week in Da Nang.
We are however still concerned that some recent trade policy measures
taken in Indonesia reflect a protectionist sentiment and do not take in
appropriate account the negative impact on the investment climate in the
country. As G20 Sherpa you are very aware of the commitment to not erect
more barriers and Indonesia could reinforce its position in the group by
showing commitment in this area.
out of scope
3/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
Defensive points:
out of scope
4.1(b)
4/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
Background
General, FTA and Vision Group
Indonesia's economic growth is – despite global crisis – impressive (4.5% in
2009). Even though EU industry present is doing well, new ('fresh') EU
investment and trade flows still remain behind the level of countries such as
Thailand and Malaysia. EU industry is complaining of reduced market access
and lack of regulatory transparency (predictability).
So far Indonesia has not shown a particular interest on entering bilateral
negotiations as already benefits of a rather open access to the EU market due to
the structure of its trade and the benefit of the GSP scheme. Moreover, the
domestic industry is already struggling with the implementation of other
agreements signed by ASEAN with regional partners. The Indonesian Trade
Minister launched last December 2009 the idea of developing a “vision” on how
to bring forward trade and investment relations between EU and Indonesia. This
proposal was subsequently endorsed the meeting between Presidents Barroso
and Yudhoyono on December 14th Commissioner De Gucht and Minister
Pangestu agreed the composition and timeframe of the Vision Group last week
in Da Nang. 4.1(a)
out of scope
out of scope
5/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
out of scope
6/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
INDONESIA DDA Profile
out of scope
7/8
Meeting with Indonesian Vice Minister for Trade Mahendra Siregar
and Vice Minister for Agriculture Bayu Khrisnamurti
Brussels, 2 September 2010
ANNEXES
out of scope
8/8