EU, Indonesia enhance economic ties with the ARISE+ Indonesia Trade Support Facility
The Deputy Minister for Economic Affairs of the National Development Planning Agency (BAPPENAS), Bambang Prijambodo, together with European Union (EU) Ambassador-Designate, H. E. Vincent Piket, launched today (25/9) the new ARISE+ Indonesia Trade Support Facility.
ARISE+ Indonesia is a four-year programme with a budget of EUR 15 million (more than IDR 232 billion) aimed at boosting the country's export competitiveness and integration into the global value chains.
The programme will advance the country's expertise in negotiating free trade agreements, improve the quality infrastructure required to boost export of key products, such as agri-food and fisheries, and will promote Indonesia's Geographical Indications (GIs). The programme is also supporting women’s economic empowerment and the involvement of small and medium-sized exporters in global value chains.
“Our long-standing economic cooperation with Indonesia is focused on improving the business environment, promoting inclusive economic development and sustainable investments," said H. E. Vincent Piket, EU Ambassador-Designate to Indonesia. "ARISE+ Indonesia will help strengthen Indonesia’s trade and investment integration in ASEAN, with the EU and within the WTO,” he added.
The EU is Indonesia’s third largest trading partner and among the most important source of foreign direct investment (FDI). In 2018, bilateral trade amounted to EUR 26.3 billion, with a surplus of EUR 6.9 billion for Indonesia. The EU is also Indonesia’s top non-Asian investor with over EUR 33 billion of FDI stock.
To further their economic ties, the EU and Indonesia are currently in the process of negotiating a Comprehensive Economic Partnership Agreement (CEPA). Once successfully completed, the trade agreement will enable increased trade in goods and services and more investment opportunities in a combined market of more than 750 million people.
The Deputy Minister for Economic Affairs of BAPPENAS, Bambang Prijambodo, applauded support to CEPA negotiation process through ARISE+ Indonesia. "The programme plays a pivotal role in facilitating rapid response to issues emerging from the negotiations and the initial phase of the implementation of the agreement. This support will focus on providing capacity-building to relevant Indonesian Ministries and Agencies by funding expertise and other relevant initiatives for the purpose of expediting the negotiations”.
ARISE+ Indonesia is implemented in partnership with BAPPENAS, the Ministry of Trade, the Ministry of Law and Human Rights, the Ministry of Marine Affairs and Fisheries, amongst other stakeholders.
The programme's initial activities will include capacity-building to various ministries, trade and investment-related studies, and technical support to associations of GI producers.
Besides working with the Government of Indonesia, collaboration with key private sector representatives is foreseen to help raise awareness of the progress of the CEPA negotiations among business communities and civil society. Such partnership will also help ensure that the benefits associated with CEPA, including increased employment opportunities and improved welfare are extended across the country.