The European Union allocates € 12.5 million to support trade and investment in Indonesia (04/11/2011)
Jakarta, 4 November 2011
Ref: D(2011)2200 EN
The European Union allocates € 12.5 million to support trade and investment in Indonesia
The European Union (EU) and the Government of Indonesia signed today (4/11) an agreement to launch the € 12.5 million EU-Indonesia Trade Cooperation Facility (TCF). This innovative programme provides tailor-made capacity building support to Indonesian government agencies involved in the improvement of the Indonesian trade and investment climate.
"The Trade Cooperation Facility will provide timely support to Indonesia's efforts to improve trade and investment conditions, and will address critical issues related to EU-Indonesia trade and investment relations" stated senior EU official Mr Dirk Meganck, Asia Director for EU Development Cooperation during the signature ceremony held at the Indonesian Ministry of Finance. He added that the TCF is "an innovative capacity building programme which has been designed based on intense policy dialogue between the partners and which allows flexibility and responsiveness to identified needs".
On his part, Rahmat Waluyanto, Director General of Debt Management at the Indonesia's Ministry of Finance expressed his appreciation to the EU for its continuing support to the Government development programs. The TCF program will strengthen the capacity of the government institutions to pursue reform initiatives in selected areas to the improvement of trade and investment.
The programme is part of a comprehensive joint cooperation strategy geared at promoting fair trade between Indonesia and its external partners and at enabling sustainable and equitable economic growth in the country. In this respect it complements important joint initiatives such as the Trade Support Programme II, which promotes export development, the support to public finance management reform and to local community development, as well as the ACTIVE grant programme, which helps Indonesian business associations enhance their capacity. The programme could also respond to the strong commitment of both parties to implement the Vision Group recommendations towards a Comprehensive Economic Partnership Agreement (CEPA) which includes cooperation on capacity building and trade facilitation".
Over recent years Indonesia has seen a healthy increase in exports and investment. However, further improvements in both areas are necessary in order to reach the levels of economic growth which will create net employment and make an impact in poverty reduction.
TCF will support Indonesia in achieving these goals. The TCF project will focus on topics such as: trade and investment policy, investment facilitation, intellectual property rights, energy planning and efficiency, technological innovation, and adaptation to international environmental regulations affecting Indonesia's trade and investment capacity.