EU and Indonesian negotiators met from 24 to 28 January 2017 for a full round of negotiations on a free trade agreement (FTA). After an initial two-day round in September last year, this second round will see negotiators enter into detailed discussions addressing all chapters of the future agreement.
The ambition is to conclude a free trade agreement that facilitates trade and investments and covers a broad range of issues, including customs duties, regulatory barriers to trade, trade in services and investment, trade aspects of public procurement, competition rules, intellectual property rights, as well as sustainable development.
In 2015, trade in goods between the EU and Indonesia amounted to over €25 billion, with EU exports worth almost €10 billion and EU imports from Indonesia worth more than €15 billion. Indonesia's key exports to the EU include agricultural products, which amounted to €4.3 billion in 2015. Other products exported by Indonesia are machinery and appliances, textiles and footwear, plastic and rubber products. The EU exports to Indonesia mostly industrial products, including machinery and appliances, transport equipment and chemical products. The EU's foreign direct investment stock in the country amounts to nearly €26 billion, and is only second to Singapore.
The negotiations are based in the context of intensified cooperation for trade and investment between Indonesia and the EU. In the forerun to the second round of negotiations, a workshop on investment protection policy and the EU proposal for an Investment Court System was held in Jakarta. Immediately after the FTA talks, both sides also hold their annual Working Group on Trade and Investment, which is a forum to address general trade matters as well as specific trade barriers that companies from both sides face in each other's markets.
A report of the second round, as well as initial EU text proposals, will be published soon.