Indonesian Trade Minister Zulkifli Hasan urges the completion of IEU-CEPA negotiations with the EU, emphasizing the challenges posed by the upcoming government transition. The negotiations have faced delays due to ongoing EU demands, prompting calls for potential shelving of certain discussions to expedite the agreement.
The Indonesian Minister of Trade, Zulkifli Hasan, has called for the swift conclusion of the negotiations regarding the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which have been ongoing for over nine years. He expressed concerns that the upcoming governmental transition will complicate the negotiations further. Minister Hasan stated, “It is not an ultimatum; we are merely indicating that it will be more challenging during the new government.” He also referenced the commitments made by President-elect Prabowo Subianto, particularly the integration of crude palm oil into solar energy for a 50 percent biodiesel mix, commonly referred to as B50. Minister Hasan noted that this move would significantly reduce Indonesia’s need for palm oil imports. The negotiations have reportedly stalled due to Indonesia’s compliance with several EU requests, which have continuously increased, leading to a complex dialogue that lacks mutual agreement at the policy level. Director General of International Trade Negotiation, Djatmiko Bris Witjaksono, indicated that there are unresolved issues regarding Indonesia’s relaxation of regulations and the EU’s deforestation regulations. He suggested that both parties might consider pausing some discussions to finalize the IEU-CEPA, with the potential for future amendments. The urgency expressed by Indonesia underscores the importance of this agreement in facilitating trade relations and addressing ongoing policy disagreements with the EU.
The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) represents a significant effort to enhance trade relations between Indonesia and the EU. Negotiations commenced over nine years ago and have been characterized by numerous challenges, particularly in harmonizing policy objectives and regulatory frameworks. The outcomes of these negotiations could alter the dynamics of trade and investment, particularly concerning Indonesia’s palm oil industry and environmental regulations. As political shifts occur in Indonesia with the election of Prabowo Subianto, there is heightened urgency from Indonesian officials to close the negotiations before potential complications arise with a new administration.
In summary, the negotiation of the IEU-CEPA is at a critical juncture, with Indonesian officials urging for its finalization amidst increasing EU demands. The potential benefits of this agreement hinge on resolving outstanding policy issues while adapting to political changes within Indonesia. The comments from both Minister Zulkifli Hasan and Director General Djatmiko Bris Witjaksono reflect the complexities of the negotiation process and the importance of timely completion of the agreement for Indonesia’s economic future.
Original Source: en.tempo.co
