Indonesia and EFTA sign Comprehensive Economic Partnership Agreement

Release time:

2018-12-24

According to Indonesian media reports on December 17, Indonesia and the European Free Trade Association (EFTA) signed the Comprehensive Economic Partnership Agreement (CEPA) in Jakarta on Sunday.

EFTA members are Iceland, Liechtenstein, Norway and Switzerland. On November 23 this year, Indonesia and EFTA completed the 15th round of negotiations since the start of negotiations in early 2011 in Geneva, Switzerland, and signed an agreement in Jakarta on Sunday. In terms of trade in goods, the agreement will provide Indonesia with broader market access for the sale of palm oil, fishery products, textiles, furniture, electronics, tires, coffee, etc. to EFTA countries. At the same time, EFTA member states will have more opportunities to enter the Indonesian market for medicines, textiles, cruise ships, and perfumes.

Indonesian Trade Minister Rujida described palm oil as a thorny issue in the negotiations between the two sides. The agreement ensures the access of Indonesian palm oil to the EFTA market and makes special provisions for the Swiss market. Amman, a member of the Swiss Federal Council and Minister of Economic Affairs, Education and Research, said that EFTA and Indonesian partners have found a solution, which is to adhere to the principle of only dealing with "sustainable products and services. Iman, director of the Department of International Trade Negotiations at the Indonesian Ministry of Trade, said that Indonesia will continue to persuade EFTA countries to accept sustainable standards under Indonesia's sustainable palm oil certification system, although this cannot be achieved overnight.

Rujida believes a deal with EFTA will lay the groundwork for Indonesia and the EU to conclude their long-running CEPA negotiations. Last year, the trade volume between Indonesia and EFTA countries was 2.4 billion US dollars, of which Indonesia exported 1.31 billion US dollars, including jewelry, gold and optical devices, while Indonesia imported 1.09 billion US dollars, mainly pharmaceuticals, fertilizers and industrial raw materials. Rujida said the agreement with EFTA will enable Indonesian workers to enjoy preferential treatment and mutual recognition in certain industries, while enhancing investment between the two sides. Indonesia will welcome EFTA countries to invest in Indonesia's agriculture, manufacturing and energy and mining sectors. Last year EFTA countries invested $0.621 billion million in Indonesia.

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