Inviting Switzerland to Collaborate in Developing IKN, Foreign Minister Retno Wants Bilateral Investment Agreements to be Ratified

JAKARTA - Indonesia wants the bilateral investment agreement with Switzerland to be ratified immediately, considering that the country is the second largest domestic investor from Europe.

The Minister of Foreign Affairs of the Republic of Indonesia, Retno Marsudi, said this while receiving a visit from her counterpart, Ignazio Cassis, in Jakarta, who also discussed a number of other issues besides investment issues.

Foreign Minister Retno explained that Switzerland is one of Indonesia's important economic partners in Europe. According to him, today's visit provides greater momentum to elevate bilateral relations to a higher level.

"Switzerland is our biggest partner in EFTA (European Free Trade Association), and also one of the biggest European investors in Indonesia," said Foreign Minister Retno in a press statement in Jakarta, Wednesday, August 2.

She further explained that the value of bilateral trade between Indonesia and Switzerland last year reached USD 2.7 billion, an increase of around 38 percent compared to 2021.

The entry into force of the Indonesia-EFTA CEPA since November 2021 has contributed to this positive trend, said Foreign Minister Retno.

Foreign Minister Retno said, in order to improve investment partnerships, where Switzerland is the second largest European investor in Indonesia in 2021, she underlined the importance of ensuring that the Bilateral Investment Agreement can be ratified within this year.

"This agreement will provide legal protection and business certainty for our investors," said Foreign Minister Retno.

"We also want to collaborate with Switzerland in developing Indonesia's new capital city, Nusantara. Especially in areas such as the hotel industry and higher education," said Foreign Minister Retno.

On this occasion, Foreign Minister Retno also conveyed Indonesia's strong commitment to contributing to achieving sustainable development, among others by accelerating the energy transition.

"I appreciate Indonesia's inclusion as a Priority Country for Swiss Development Cooperation for 2021-2024, for the fourth time in a row," she explained.

"This program has funded 37 projects in the public-private sector, including the Renewable Energy Skills program, the Renewable Energy Development Initiative and the initiative under the MoU on Sustainable Landscapes," explained Foreign Minister Retno.

Foreign Minister Retno added that she hoped that the two countries could explore more initiatives through this cooperation framework, to develop and support green development in Indonesia.