RI-Switzerland Trading Increases To IDR 50.31 Trillion After Indonesia-EFTA CEPA Implementation

Cooperation (Photo: dock. Unsplash)

JAKARTA - The Indonesian Embassy in Bern recorded a threefold increase in Indonesia-Switzerland trade. This is after the implementation of the Indonesia-EFTA Comprehensive Economic Cooperation Agreement (IE-CEPA) since November 1, 2021.

Based on data from the Indonesian Embassy, Indonesia-Switzerland bilateral trade in 2023 increased to IDR 3.11 billion US dollars (around IDR 50.31 trillion) with a surplus of more than 2 billion US dollars for Indonesia.

"For Indonesia, Switzerland and countries that are members of EFTA (Switzerland, Norway, Liechtenstein and Iceland) are CEPA's first partners in Europe, while Indonesia is EFTA's first partner in ASEAN," said the Indonesian Ambassador to Switzerland and Liechtenstein Ngurah Swajaya quoting Antara.

Indonesia and Switzerland just held their 10th Joint Economic Trade and Commission (JETC) meeting in Bern, on April 23, which is an annual dialogue to increase economic cooperation between the two countries, discussing challenges and opportunities, in particular by taking advantage of their respective advantages.

The day before the JETC meeting, Ambassador Ngurah also attended The Third Annual Meeting of the Swiss-Indonesia Trade and Sustainability Council in Zurich, organized by the Indonesian Chamber of Commerce and Industry and Economicsuisse.

The meeting was a series of JETCs to continue cooperation on sustainability and trade issues, as well as increase the capacity of Indonesian MSMEs in the textile and infrastructure industry sector.

The issues of economic cooperation and development raised in JETC include the continuation of Indonesia-Switzerland development cooperation for the period 2025-2028, technology-based and low-carbon industrial investments, health cooperation, the digital economy, optimizing the utilization of CEPA, including cooperation in the field of vocational education and professionalism to increase the competitiveness of Indonesia's industry.

The meeting agreed on several concrete results, including starting discussions on the extension of the 2025-2028 development cooperation, increasing the diversification of Indonesia's export products to Switzerland, including more access for superior Indonesian MSMEs, increasing investment by utilizing Indonesia as part of the Swiss industrial supply chain in the Asian region.

Discussions also include exploring cooperation in various other fields, such as tourism, avoiding double taxes and cooperation in air transportation.

Cooperation in the field of education, especially vocational and professionalism, has begun and will continue to be strengthened to support the increased competitiveness of the Indonesian industry, especially those based on technology and low-carbon.

"In strengthening the high-tech and low-carbon industrial ecosystem in Indonesia, the Indonesian Embassy will continue to approach Swiss industry players and MSME players," said Ngurah.

Economically, bilateral trade between the two countries has surpassed the US$3 billion range in recent years, especially since the IE-CEPA and Indonesia have now hosted an investment destination of around 150 Swiss companies in various fields.

The bilateral agreement in the economic sector will also soon be strengthened by the Bilateral Investment Agreement or Investment Improvement and Protection Agreement (P4M), which has been signed in 2022 and is expected to take effect in 2024.

The validity of the two agreements is expected to strengthen the use of potential cooperation which is still significant to be improved.

The presence of the private sector of the two countries and representatives of several ministries provide added value to concretely encourage commitment to increasing economic cooperation.

"The increase in trade value by up to three times actually occurred at the end of COVID-19 and at a time when global economic conditions had not yet recovered, it showed great commitment and potential to be developed for the benefit of the people of the two countries," said Ngurah.

Indonesia-Switzerland's total trade value in 2023 reached US$3.11 billion or Rp50.31 trillion, with a total value of Indonesia's exports of US$2.66 billion (Rp43.09 trillion), while Indonesia's import value from Switzerland was US$446.29 million (Rp7.21 trillion).

Thus, the value of the Indonesia-Switzerland trade surplus is worth US$2.21 billion or around Rp35.88 trillion.

The Indonesia-Switzerland trade balance in 2023 increased 24.32 percent, with the export balance increasing by 20.37 percent and the import balance also increasing by 3.92 percent compared to 2022 (YoY).

Regarding investment, the January-December 2023 period shows that Switzerland is 6th out of all European countries. The number of investment projects from Switzerland reached 750 projects, with an investment value of 150.065 million US dollars.

By 2022, Switzerland will be 5th in Europe with 292 investment projects, with an investment value of 133,772 million US dollars.

The value of Swiss investment in Indonesia increased by 12.17 percent in 2023 compared to 2022 (YoY).