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Speech by H.E. Vincent Guérend, the EU Ambassador to Indonesia, at the Signing of the 'ARISE Plus Indonesia' Financing Agreement
Jakarta, 21 August 2018
Dear Pak Luky Alfirman, Director General of Budget Financing and Risk Management,
Representatives of BAPPENAS, the Ministry of Trade, the Ministry of Law and Human Rights,
Ladies and Gentlemen,
Selamat pagi dan salam sejahtera.
It is my pleasure to represent the European Union at the signing ceremony of ARISE Plus Indonesia. This new programme marks the continued economic cooperation between the Indonesian Government and the EU in trade related areas. I would like to thank all Indonesian stakeholders for their close engagement and valuable contributions during the formulation process of this new programme. In particular, I would like to highlight the role of BAPPENAS and the Ministry of Trade, as well as the Ministry of Industry, the Ministry of Agriculture, the Ministry of Marine Affairs and Fisheries, BPOM - the National Agency for Drugs and Food Control, and many others.
Trade is one of the main avenues for the EU to engage with its key partners globally. As a priority area for both the EU and Indonesia, economic cooperation remains one of the cornerstones of our mutual partnership based on common interests; common interests, which I believe are well reflected in this new programme.
ARISE Plus Indonesia is an important EU-funded programme (10 million euro – equivalent to over 160 billion Rupiah), which aims to contribute to Indonesia's preparedness and enhanced competitiveness in global value chains through specific support targeting national and sub-national levels. By enhancing Indonesia's trade competitiveness and openness, the programme will promote inclusive and sustainable economic growth, boost job creation and increase employment. Therefore it will support Indonesia in reducing poverty and achieving the SDGs.
ARISE Plus Indonesia is designed as a country-level trade-related assistance closely aligned with the regional perspective of ASEAN. It will focus on supporting national priorities in four sectors: trade and investment policy planning, trade facilitation, export quality infrastructure and IPR focusing on Geographical Indication. The planned activities will build upon tangible results achieved by previous EU-Indonesia trade related assistance programmes, which were successfully concluded in 2015/2016.
In addition, ARISE Plus Indonesia foresees interventions that are closely linked to the 41 million euro ARISE Plus regional programme supporting regional economic integration and trade in ASEAN. These activities will help improve SME's participation in Global Value Chains and to enhance the alignment of the national rapid alert system for food and feed products with the ASEAN rapid alert system.
While being conceived as a cooperation programme, ARISE Plus Indonesia promotes a coherent and coordinated approach not only between development and trade policy, but also many other policy areas. This is underscored by the breadth of different actors I mentioned earlier that supported the formulation of this new programme.
In view of the ongoing negotiation process of EU-Indonesia Comprehensive Economic Partnership Agreement (IEU-CEPA), ARISE Plus Indonesia will also facilitate rapid response to issues emerging from the negotiations and/or initial phase of the implementation of the agreement. The assistance will encompass all key areas in the negotiations and focus on capacity building to relevant Indonesian ministries and agencies by funding expertise and other initiatives relevant for the negotiations. Furthermore, the facility foresees knowledge sharing activities as well as dissemination and communication of CEPA results at national and sub-national levels.
I would like to highlight that Indonesia still has enormous potential to improve its trade performance and competitiveness in the global market as well as to step up further in unlocking potential for growth in its trade and investment relations with the EU. Our work with various stakeholders in this country has shown that potential and capabilities, which should be explored even further.
One example of future cooperation I would like to highlight is the EU's Asia Investment Facility, which promotes investments and key infrastructure, in particular in graduated countries such as Indonesia. We are looking forward to supporting projects by the German Development Bank KfW that will promote policy loans and support the strengthening of PT SMI as a local development bank in Indonesia with grants and technical assistance in the coming years.
We look forward to join hands with all of our counterpart ministries/agencies to make this collaborative work successful and produce fruitful results.
Thank you for your attention.