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 6-8 have been entirely redacted  according article 4.1(a) of Regulation 1049/2001
BRIEFING  

Meeting  with  Indonesia's  Ministel'  fol'  Economiw-ffair�donesi� Ml' 
Dal'min Nasution 
Ref. 
2017)38  260-1 1/08/2017 
Ref. Ares(2020)3403390 - 29/06/2020
0  Commissionel' Malmstl'om 
Origin: DG TRADE 
0  Date: 18 July 2017, 11.30-12.15 
0  Place: Bl'ussels 
SCENE SETTER 
You will meet Minister Daimin Nasution for the first time. A fo1mer Central Bank Governor and 
three times deputy minister, including at the Ministiy of Trade and industiy, Minister Nasution is 
a respected technician, who overviews the econoinic policies, coordinates vai·ious ministi·ies and 
has a role in the FTA negotiations. f4( )(a) 

Indonesia staited issuing refo1m packages in  September 2015. However, implementation of the 
refo1ms is slow. Trade baiTiers continue to apply in a high number. Minister Nasution is repo1ted 
to  have  pushed  for  the  review  or  suspension  of  some  conti·oversial  regulations  ( e.g.  a 
manufacturing  local  content  requirement  in  an  IPR  law  and  a  daiiy  products  protectionist 
regulation).  While  changes  ai·e  still  uncertain  and  minor  as  compai·ed  to  the  high  number  of 
Indonesia's ti·ade resti·ictive measmes - particulai·ly at a time when we are entering into the thii·d 
round of FTA negotiations- they ai·e evidence of a more balanced attitude. 
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Meeting with Indonesia's Minister for Economic Affairs, Indonesia, Mr
M   BRIEFING 
Darmin Nasution  
Commissioner Malmström
Origin: DG TRADE 
Date: 18 July 2017, 11.30-12.15
Place: Brussels
• The expected benefits of CEPA risk being nullified by the effect of
the existing trade barriers. Successful conclusion of CEPA will
require economic reforms, including by removing WTO
incompliant or FTA incompliant measures. For instance:
o Export duties: our agreed scoping paper agreed last year
provided for ambitious language on the elimination in
principle of all export duties and the prohibition on
introducing new ones, yet at the latest FTA discussions
Indonesia signalled great difficulty with this.
o Non-automatic import licensing applies to most goods in
addition to cumbersome pre-shipment verifications.
Operators need predictability and legal certainty instead of
arbitrary measures;
o Local content requirements are a systemic issue, as relevant
provisions are found in legislation on energy, raw minerals,
government procurement-related legislation, retail and
franchising, among others;
o Cumbersome and unpredictable sanitary and phyto-sanitary
measures which hamper imports into Indonesia;
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o  Meeting with Indonesia's Minister for Economic Affairs, Indonesia, Mr 
M   BRIEFING 
Darmin Nasution  
 
o  Commissioner Malmström 
Origin: DG TRADE 
o  Date: 18 July 2017, 11.30-12.15 
o  Place: Brussels  
 
o  Halal measures which, if fully implemented, would be 
extremely trade restrictive and could bring to a halt trade 
flows in various sectors, beyond food produce. 
•  When will reform packages be implemented and enforced? We 
need confidence building measures to build trust.  
•  How does Indonesia intend to solve the termination of expiring 
BITs? Investment protection is key.  
•  CEPA should provide a stable, predictable and transparent long-
term framework for bilateral trade relations, also providing 
certainty for exporters and investors on both sides, hereby 
stimulating more FDI.  
•  We regret that Indonesia has not refrained from discontinuing of 
Bilateral Investment Treaties with EU Member States, but we hope 
CEPA can ensure a smooth transition towards and a new, modern 
EU-Indonesia framework for investment and investment 
protection.  
•  We are convinced that the EU and Indonesia share the same 
objective of increasing and facilitating bilateral investments to the 
benefit of both economies while minimising the risks. This is why 
we propose an investment court system – which could over time 
evolve into a multilateral investment court.  
 
 
 
  
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o  Meeting with Indonesia's Minister for Economic Affairs, Indonesia, Mr 
M   BRIEFING 
Darmin Nasution  
 
o  Commissioner Malmström 
Origin: DG TRADE 
o  Date: 18 July 2017, 11.30-12.15 
o  Place: Brussels  
 
Visit President Jokowi 
•  Hope we will find a slot during President Jokowi's state visit to 
Brussels to meet also President Juncker. Good if Presidents can 
touch base and give steer to the many areas of cooperation between 
both sides. 
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