Coordinating Minister for Economic Affairs Airlangga Hartarto held a bilateral meeting with the Executive Vice-President/Trade Commissioner - European Commission Valdis Dombrovskis, at the Sofitel Hotel, Nusa Dua, Bali. During the meeting, the two agreed to accelerate the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations. "The leaders of the two parties have a strong commitment to immediately resolve the problems that are still an obstacle in the IEU-CEPA negotiations, especially the settlement at the technical level, by involving all stakeholders," said Airlangga in a written statement, Thursday (22/9/). 2022). For information, the European Union (EU) is one of Indonesia's main trading partners, but the potential value of bilateral trade and investment between Indonesia and the European Union has not been properly reflected. It is known that in 2021 the trade value between Indonesia and the EU will be recorded at USD 29.03 billion. This value shows an increase when compared to 2020 which was only USD 23.26 billion. Meanwhile, in the January-July 2022 period, the trade value was recorded at USD 18.59 billion, an increase of 20% from the same period the previous year, which was USD 15.52 billion. Therefore, accelerating the completion of the IEU - CEPA negotiations is very important because the implementation of the IEU - CEPA will encourage increased trade transactions and provide benefits for Indonesia and all member countries of the European Union.
Not only discussing the acceleration of the completion of the IEU - CEPA negotiations, the meeting also discussed the European Union policy proposals implemented by the Green Deal Strategy, particularly regarding the Deforestation Free Supply Chain (DSFC), the trade dispute process at the WTO and the European Union, the Commodity Balance, and Halal Certification. Airlangga emphasized that Indonesia is closely watching the steps of the European Union regarding the implementation of the Green Deal Strategy and Carbon Border Adjustment Mechanism (CBAM) which can have an impact on aspects of trade between Indonesia and European Union members. To support the halal industry in exporting goods to Europe, Airlangga has also conveyed that Indonesia already has a body that handles halal certification (BPJPH). It is hoped that the process of marketing products to European Union countries can encourage mutual recognition agreements. In response to this, the European Union is impressed and appreciates the efforts and steps taken by the Government of Indonesia in creating economic convenience and an investment climate that supports Foreign Direct Investment (FDI) which is encouraged through the Job Creation Law. To strengthen the policies that have been submitted, the European Union hopes that various technical obstacles in the field can be immediately carried out. EVP Dombrovskis also agreed that the relationship between the two parties is very important and has great opportunities. He said that the EU also wants transparency in the carbon price. In addition, the European Union also praised Indonesia's role in the region and at the global level, through ASEAN and the G20, and expressed support for Indonesia in other international forums. To note, at the meeting, Airlangga was accompanied by the Minister of Industry, the Coordinating Minister for the Economy, the Secretary General of the Ministry of Industry, the Director General of KPAII at the Ministry of Industry and the Deputy Assistant for Economic Cooperation in Europe, Africa and the Middle East at the Coordinating Ministry for the Economy. Meanwhile, from the European Union, EVP Valdis Dombrovskis was present, namely the EU Ambassador to Indonesia and Brunei Darussalam, Head of Cabinet Commissioner for Trade European Commission, and related officials.
