Indonesia's Deputy Minister for International Economic Cooperation, Edi Prio Pambudi, announced that Indonesia and the European Union (EU) have reached consensus on 11 out of 21 issues in the 18th round of negotiations for the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The agreed-upon issues encompass various aspects, including Customs and Trade Facilitation, Trade Remedies, Economic Cooperation, and Capacity Building. During a media briefing titled "Indonesia's Leadership Role in International Economic Cooperation" in Jakarta on Thursday, Edi highlighted the progress made, with 11 issues resolved compared to the previous round's eight. However, 10 issues remain unresolved, prompting hopes for their resolution during the 19th round scheduled for July 2024. The negotiations have been protracted, partly due to the evolving standards set by the EU. Indonesia has urged the EU to establish clear and consistent standards in each negotiation round to facilitate progress. Despite challenges, both parties have demonstrated flexibility and pragmatism to achieve the target of concluding negotiations this year.
The IEU-CEPA negotiations aim to enhance trade between Indonesia and the EU, leading to economic benefits such as real Gross Domestic Product (GDP) growth and increased income. Studies from the Centre for Strategic and International Studies (CSIS) indicate the potential for a 0.10% increase in real GDP and a $2.8 billion increase in income for Indonesia. Additionally, Indonesian exports to the EU could rise by 57.76%. Edi emphasized Indonesia's commitment to maintaining sovereignty and independence throughout the negotiations, ensuring that the country's interests are safeguarded and not unduly influenced by external factors. In summary, the progress made in the 18th round of IEU-CEPA negotiations reflects a significant step towards fostering economic cooperation between Indonesia and the EU, with promising prospects for mutual growth and benefit.
