Airlangga Reveals Indonesia-EU Trade Agreement Is Hampered By Europe
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the negotiation process for the Indonesia-EU European economic cooperation agreement or Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was hampered due to a change in ranks at the IEU-CEPA.
Airlangga said the IEU CEPA negotiations had been running for 9 years and had entered the finalization stage. However, the settlement of this agreement did not run smoothly due to a change in management.
"Here it can be conveyed that the IEU-CEPA negotiations are also being finalized, although it is not easy, because the cabinet in the IEU-CEPA has changed. So in the past our negotiator was (changed), now he is no longer in office," said Airlangga at the National Coordination Meeting for the Acceleration and Expansion of Regional Digitalization (P2DD) at the Hotel Indonesia Kempinski, Monday, September 23.
Airlangga explained that there were several changes in requirements for Indonesia, namely, the European Union wants Indonesia to relax import policies for products originating from Europe and export restrictions policies in the form of imposition of outbound duties, as well as the third regarding digital taxation.
"There are three main issues that they encourage, namely they want the import problem to be made easier in Indonesia immediately, then they still insist on the cost of the exit fee, and also they still insist on digital taxation, digital transmission. We ask to wait for WTO (World Trade Organization), they don't want to," he said.
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In the midst of the negotiation process being hampered, Airlangga explained that he had received instructions from President Joko Widodo (Jokowi) and the blessing of Elected President Prabowo Subianto to accelerate the process of accessing the Comprehensive and Progressive Agreement (CPTPP).
Airlangga said that currently those who have entered CPTPP are New Zealand and currently ASEAN countries that are already members are Singapore, Vietnam, Brunei, and Malaysia. If Indonesia joins, it can open markets to the UK, Canada, Mexico, Chile, to Peru.
"Based on experience, the I-EU CEPA negotiations, each negotiator is new, but if CPTPP or OECD is expected to play by the book, there are manual standards, so it is simpler, even though it will take time," he said.