Indonesia and EU: Playing to our strengths in changing world

Retno L.P. Marsudi and Viorel Isticioaia-Budura, The Jakarta Post, Bogor, West Java | Wed, 11/16/2011 8:29 AM A | A | A |-Klipping the Jakarta Post

The tripartite meeting of President Susilo Bambang Yudhoyono with Herman van Rompuy, the president of the European Council, and José Manuel Barroso, the president of the European Commission, on the sidelines of the G20 Summit in Cannes on Nov. 4, was a positive reminder of the wide-ranging nature of the partnership between Indonesia and the European Union (EU).

The leaders cemented their cooperation on climate change, counterterrorism and economic relations. They looked to boost two-way trade (now exceeding ¤20 billion) and investment (reached almost ¤3 billion) through the launch of talks on an ambitious Comprehensive Economic Partnership Agreement (CEPA).

The high-level talks between the EU and Indonesian officials in Bogor last week were an opportunity to drive forward the political priorities articulated by our respective Presidents.

This contact has set the scene for the entry into force next year of the EU-Indonesia Partnership and Cooperation Agreement, which will introduce regular high-level political contact between both sides, to establish better structured bilateral cooperation.

What are the contours of our strengthening and deepening re- lationship?

First, it is rooted in a shared vision of a more democratic and stable world order. Indonesia and the EU see the desirability of multilateral solutions to global problems.

That entails responsibilities at home and constructive engagement abroad. Climate change is an excellent example: Indonesia and the EU both wish to see an agreement for monitoring, reporting and verification of greenhouse gas emissions reductions during the next UNFCCC meeting in Durban, South Africa.

With EU pledges on economy-wide emissions reductions and Indonesia’s voluntary commitment on nationally appropriate mitigation actions in mind, we call on all other developed and developing countries to rise to the challenge of tackling climate change.

The EU and Indonesia are committed to supporting democratic values. Indonesia’s Bali Democracy Forum’s initiative, in particular through its implementation agency — the Institute for Peace and Democracy — is an opportune venue to share experience and best practices on democracy.

The transformation of 10 former Communist States into thriving members of the EU serves as a valuable basis for the EU’s support for emerging democracies in the Middle East, buttressed by the allocation of around ¤1.2 billion in grants to facilitate transition in that region.

Peace, security and stability are a natural concern of our partnership, with both parties enduring major terrorist attacks in recent years. In efforts to fight the threat of terrorism, Indonesia and the EU plan to hold a dialogue on counterterrorism and cooperate on a new program to build counterterrorism capacities and enhance de-radicalization endeavors.

The world has been experiencing increasing food and oil prices. High food prices impact inflation, but also poverty and hunger, which can lead to social and political unrest.

Food security is a further global issue that warrants sustained attention from both the EU and Indonesia. With the world’s population already approaching 7 billion this year, and expected to reach 9 billion by 2045, the pressure on food, energy, water and resources are apparent.

As the race for scarce resources will be the next major world challenge, we should manage it together by ensuring that new technology and processes are harnessed to safeguard our food production.

As such, President Yudhoyono has proposed to presidents Barroso and van Rompuy that the two sides enhance cooperation in this critical field.

We can also learn from each other on disaster management and disaster risk-reduction. Both Europe and Indonesia have endured the ravages of natural disasters, from forest fires in Greece to the eruption of Mount Merapi. This suffering has focused our minds on how to avert future disasters and minimize damage such events inflict.

During the visit to Jakarta this September of Kristalina Georgieva, the European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, we explored possibilities for future engagement between the EU, Indonesia and ASEAN, including cooperation between the EU’s Humanitarian Office (ECHO) and the National Disaster Mitigation Agency (BNPB).

This will build on long-standing collaboration, with ECHO having provided ¤6.7 million for Indonesian and regional initiatives to boost local communities’ capacities for disaster preparedness since 1998.

Second, our relationship must enhance the prosperity of our citizens. In spite of the economic and financial challenges confronting Europe and other parts of the world, our bilateral trade is growing apace, with a 20 percent increase in exports from Indonesia to the EU this year.

Foreign direct investment by EU companies in Indonesia is touching ¤3 billion and, with Indonesia’s attractiveness as a commercial destination rapidly increasing, that figure is set to increase significantly.

More than 700 EU companies have set up operations in Indonesia, generating around 500,000 jobs in key industries such as pharmaceuticals. In the G20 context, we share the goal of safeguarding the global economy against a repeat of the damaging shocks inflicted upon it since 2008.

Indonesia and the EU are also ensuring that our markets are tailored to what modern consumers demand, including in terms of product quality and the fulfillment of ethical standards.

This is exemplified by our initialing in May 2011 of the Voluntary Partnership Agreement (VPA). The agreement foresees the verification of the legality of timber products exported to the EU and is designed to support Indonesian efforts to ensure that forests are sustainably managed, including through the national timber legality verification scheme, known as SVLK.

A further example is our collaboration on Illegal, Unreported and Unregulated (IUU) fishing, with both sides committed to resolving the problems and technical cooperation underway through our Trade Support Program.

Third, we must foster people-to-people links. Excellent examples include thriving educational contact: Over 1,000 scholarships were granted to Indonesian students by the EU and its member states and 81 European universities are participating in this month’s European Higher Education Fair in Jakarta.

We are also collaborating on interfaith issues. Last month, the EU-Indonesia conference on “Human Rights and Faith in Focus” attracted 150 participants and identified recommendations for our future cooperation in this field.

With much untapped potential in people-to-people contact — including in tourism — we are working to ensure that Indonesian and EU citizens can travel more easily to our respective countries.

Fourth, Indonesia’s successful chairmanship of ASEAN has underlined the value of sharing our mutual experiences of regional integration. There is no single blueprint for such integration.

However, ASEAN and the EU share many common ideals and goals, in particular the creation of prosperous, dynamic and peaceful regions that can bring tangible benefits to their citizens.

While the cordial and extensive tripartite meeting of our Leaders in Cannes is still fresh in our memory, Indonesia and the EU can look forward to realizing the immense potential of the EU-Indonesia relationship, in the confidence that it is well-equipped to meet the challenges of a changing world.

The writers are the SOM leader of Indonesia and SOM leader of the European Union.