As negotiations on the Comprehensive Economic Partnership Agreement (CEPA) continue, the European Commission has published the final version of the Sustainability Impact Assessment and the June Round Summary. In the meantime, discussions with Jakarta have continued at a steady pace since their launch in July 2016 (see EUROPE 12303/16).
Uneven progress
The last round was held in virtual mode from 15 to 26 June; the Commission's report notes "good progress", in particular on geographical indications (see EUROPE 12443/21) or rules of origin.
Negotiators also closed the chapter on customs and trade facilitation.
But talks are stalled elsewhere, notably on the issue of access to Indonesian government public procurement or on the chapter on sustainable development.
Tensions surrounding the Indonesian palm oil trade could also hamper further discussions (see EUROPE 12391/19, 12300/13).
As for the impact assessment, it mainly corroborates the Commission's assessment by confirming that the agreement should be beneficial for both the EU and Indonesia. The date of the next round of negotiations remains to be agreed.
Supporting the recovery
Indonesia hopes to conclude these talks with the EU in 2021 to support economic recovery in the aftermath of the Covid-19 pandemic. The Indonesian economy could contract by 3%, the lowest point since 1999, according to Moody's estimates.
In this context, the European Chamber of Commerce, which represents European companies in Indonesia, has once again urged the Joko Widodo government to facilitate access for investors to the Indonesian market by cutting red tape, improving the predictability of the business environment in Indonesia and revising its negative investment list. In a series of documents dated July 2020, it also calls on Jakarta to improve the protection of intellectual property rights or to harmonise standards with international standards, among others.
Summary of the last cycle: https://bit.ly/3fM0CFe; sustainable impact assessment: https://bit.ly/2OJ0wSJ (Original version in French by Hermine Donceel)