Within the ASEAN region, the EU has already concluded negotiations with Singapore and Vietnam – which will hopefully enter into force in the course of 2019. Other negotiations with the Philippines, Thailand and Malaysia have also begun. The ultimate goal is for bilateral trade agreements with individual ASEAN countries to serve as building blocks for a future EU-ASEAN agreement. The EU and Indonesia have established strong trade relations, with bilateral trade of around €25 billion in 2012, resulting in a substantial trade surplus of €5.7 billion between Indonesia and the EU. In recent years, trade between the EU and Indonesia has been on an upward trend. While total trade amounted to almost €16 billion in 2009, it had already reached €23.5 billion in 2011.  For EFTA-Indonesia trade statistics, see EFTA Trade Statistics Tool This article refers to trade relations between Indonesia and the European Union. As a broad-based free trade agreement, CEPA EFTA-Indonesia covers trade in goods, trade in services, investment, intellectual property rights, government procurement, competition, trade and sustainable development, and cooperation. In the area of trade in goods, the EFTA States shall abolish all customs duties on imports of industrial products, including fish and other marine products, originating in Indonesia. Indonesia will phase out or reduce tariffs on industrial products, including fish and other marine products, originating in an EFTA State.
This document aims to identify the potential impact of a Comprehensive Economic Partnership Agreement (CEPA) on trade in goods and services between the European Union (EU) and Indonesia, in particular to address issues that could be considered as an obstacle to the conclusion of cePA negotiations. The agreement between the EU and Indonesia will improve economic relations between these economies while creating benefits for both. Indonesia and the EU have been discussing the preparation of CEPA since 2012. Cepa has been shown to be able to help both sides take full advantage of the untapped economic relations between the EU and Indonesia. It will be a comprehensive agreement that will focus on various aspects of economic relations and go beyond a simple agreement to remove barriers to trade. While the liberalization of world merchandise trade remains an important aspect of CEPA, investment promotion and facilitation, improved trade in services, and the creation of better practices in competition policy would also contribute to improved economic relations. Indonesia expects three important contributions from CEPA: firstly, the most obvious is the promotion of increased trade between Indonesia and the EU. The agreement`s focus on trade liberalization will increase the intensity of trade relations by removing barriers to trade and facilitating trade. Second, the expected contribution of CEPA will affect trade transactions and foreign investment in services; Third, increase the transfer of technology and skills in goods, services and investment.
Finally, I would like to say that free trade between the EU and Indonesia will provide a more stable, balanced and long-term framework for extra-regional cooperation. Indonesia mainly exports agricultural products and processed raw materials to the EU, mainly palm oil, fuels and mining products, textiles and furniture. EU exports to Indonesia consist mainly of high-tech machinery and vehicles, chemicals and various industrial products. Essentially, trade flows between Indonesia and the EU are complementary.  In December 2009, the EU decided to continue negotiations on free trade agreements with the various ASEAN countries, starting with Singapore and passing through Malaysia and Vietnam. Indonesia and the European Union (EU) have agreed to start negotiations on a Comprehensive Economic Partnership Agreement (CEPA) as both sides seek to promote mutual EU trade and investment in Indonesia.  For the EU, Indonesia is the 24th largest source of imports (0.9%) and the 30th largest export variety (0.6%). Within the ASEAN region, Indonesia ranks fourth in terms of total trade.  Indonesia signed a Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) countries on 16 December 2018. EFTA is made up of some of the richest countries in the world – Iceland, Liechtenstein, Norway and Switzerland. The trade agreement, called the Comprehensive Economic Partnership Agreement (CEPA), enters into force after it has been ratified by the parliaments of the signatory states. .