TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
EU praises study on CEPA
The EU Delegation to Indonesia, Brunei Darussalam and ASEAN has welcomed the impact of an EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) study commissioned by the Centre for Strategic and International Studies (CSIS) and released in Jakarta on Thursday
Change Size
T
he EU Delegation to Indonesia, Brunei Darussalam and ASEAN has welcomed the impact of an EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) study commissioned by the Centre for Strategic and International Studies (CSIS) and released in Jakarta on Thursday.
The delegation's head of trade, Harvey Rouse, said the EU was the largest export destination for Indonesia last year in terms of non-oil and gas exports and was the second-largest investor, but there was much more potential to increasing trade, services and investment.
'The CSIS study shows clearly that the EU and Indonesia are complementary economies and that a comprehensive CEPA between the EU and Indonesia would create a 'win-win' solution,' said Rouse during the launch of the study in Jakarta on Thursday.
The study points to the importance of the EU market for Indonesia. The EU consists of a market of over 500 million consumers, making it the largest economy and the largest provider of foreign direct investment in the world.
In 2014, the EU overtook China to become Indonesia's largest export market for non-oil and gas exports and it is the largest trading partner with which Indonesia enjoys a trade surplus.
'The CSIS study clearly shows that only a comprehensive CEPA will contribute real benefits to both sides,' said the EU in a statement made available to The Jakarta Post on Thursday.
According to the study, a successful, comprehensive CEPA will lead to an increase in Indonesia's exports by up to US$1.1 billion, a continued trade surplus with the EU and more investment from the EU. On the other hand, without a comprehensive CEPA, Indonesia's exports to the EU could drop by 20 percent or $4 billion
'The CSIS study stresses the importance of Indonesia plugging into global supply chains and that greater market access for EU products would also increase Indonesia's industrial competitiveness,' the EU said.
Worldwide, the import content of exports today is 40 percent and growing enormously. The CSIS found that a comprehensive CEPA would lead to the development of a diversified and higher value added economy, as well as help develop Indonesia into the manufacturing hub of ASEAN.
"I agree with CSIS' analysis that a comprehensive CEPA would substantially increase Indonesia's exports to the EU, including increasing services, content of exports and helping maintain Indonesia's competitiveness among ASEAN countries, which will provide a transparent and predictable investment environment leading to even more EU FDI and job creation,' said European Business Chambers of Commerce in Indonesia (EuroCham) chairman Jakob Friss Sorensen.
'This assures very importantly that Indonesia is attractive to manufacturers wanting to set up a production base that plugs into global value chains,' he said. (ebf)(+++)
