Deputy Minister Of Trade Roro Says IEU-CEPA Settlement Encourages Strengthening Indonesia-Netherlands Business

JAKARTA - Deputy Minister of Trade of the Republic of Indonesia Dyah Roro Esti Widya Putri highlighted the importance of finalizing the Indonesia-EU comprehensive economic partnership agreement (IEU-CEPA) and cooperation in compliance with EU environmental policies that have the potential to hinder trade.

In addition, in a meeting with the Deputy Minister of International Relations of the Netherlands, Michiel Sweers, in Jakarta, Monday, June 16, Roro also discussed the potential for bilateral cooperation in depth covering the renewable energy, maritime and agriculture sectors.

"We appreciate the significant progress in negotiations and encourage Indonesia and the EU to reach a substantial agreement this year. A number of issues related to non-tariff provisions have in principle been resolved. The negotiating team focuses on reaching common ground through the preparation of a legal draft," said Roro in an official statement, Selesa, June 17.

Roro views the completion of the IEU-CEPA as the best way for both parties to immediately create a more business-friendly environment to maintain economic welfare.

According to him, the IEU-CEPA is also considered the best means of finding a middle ground related to regulations that have the potential to impose unnecessary burden on trade, are discriminatory, and are not in line with the rules and principles of the World Trade Organization (WTO).

Not only that, during the meeting the Deputy Minister of Trade Roro also highlighted the postponement of the European Union Deforestation-free Regulation Indonesia (EUDR).

"We really appreciate the postponement of EUDR. However, it does not answer our main concern, namely the potential bad impact, especially for our small farmers. Indonesia views this policy as discriminatory and counterproductive to joint global efforts in overcoming climate problems," said Roro.

Meanwhile, Dutch Deputy Minister of International Economic Relations Michiel Sweers conveyed the potential for cooperation in the renewable, maritime and agricultural energy sectors, particularly in infrastructure and digitization improvements.

In terms of IEU-CEPA settlement, Sweers support the CEPA settlement. Swedens said that the EU policy related to the environment is to create sustainability so it is necessary to think about the best ways that are mutually beneficial.

For your information, based on data processed by the Ministry of Trade, Indonesia-Netherlands' total trade in 2024 reached 5.6 billion US dollars, an increase of 18.2 percent compared to the previous year's export of Indonesia was recorded at 4.7 billion US dollars and imports of 982 million US dollars.

Thus, Indonesia earned a surplus for Indonesia of USD 3.7 billion. Where Indonesia's main exports to the Netherlands include industrial monocarboxylate fatty acids; copra and its derivatives; mangicles and other solid residues; palm oil; and footwear.

Meanwhile, Indonesia's imports to the Netherlands include recycled cartons, storage devices, recycled plastics, barbershops, and water pumps.

Based on data processed by the Investment Coordinating Board (BKPM), the Netherlands is a source of direct foreign direct investment (FDI) for Indonesia and invests US$800 million spread to 2,571 projects. In 2020 to 2024, the Netherlands has more than 10,000 projects with an investment value of US$6.5 billion.