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 ambassador responds
While no one sees dispute settlement as a first resort, it is a method to contain a disagreement to its inner perimeter and prevent spill-overs and repercussions elsewhere.
Change Size
President Joko "Jokowi" Widodo (left). ( Courtesy of Presidential Press Bureau / Laily)
The punchy title of The Jakarta Post editorial “Jokowi’s EU fight” on Nov. 26 might make readers think that the European Union-Indonesia relations are on the brink of war. This is not the case.
Rather, top-level bilateral visits over the past few months by EU Foreign Policy High Representative Josep Borrell and EU Commission Executive Vice President Frans Timmermans are signaling a marked expansion of our political engagement with Indonesia. This is taking shape in the EU’s new Indo-Pacific Strategy, an open-door policy toward any country with which we have interests in common. ASEAN is at the strategy’s center, and at ASEAN’s heart is Indonesia.
Visits in November by Denmark’s Foreign and Trade Minister Jeppe Kofod and French Foreign Minister Jean-Yves le Drian show the same. Our cooperation is expanding in trade and investment, and will see a quantum leap once we conclude the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA).
Indonesian Trade Minister Muhammad Lutfi is meeting with EU Commission Vice President Valdis Dombrovskis shortly to take this forward. In the margin of the Rome Group of 20 Summit, President Joko “Jokowi” Widodo met with EU Council President Charles Michel and Commission President Ursula von der Leyen to discuss cooperation on Indonesia’s G20 presidency and on an agenda for sustainable growth aiming at net-zero greenhouse gas emissions.
Can the World Trade Organization (WTO) dispute cases over palm-oil-based biofuel (case filed by Indonesia) and nickel (filed by the EU) derail all that? No. In fact, while no one sees dispute settlement as a first resort, it is a method to contain a disagreement to its inner perimeter and prevent spill-overs and repercussions elsewhere.
It is a tool to fend for one’s interests without fighting over them and to continue amicable and productive relations in other fields. It is a way for partners to show they respect one another, regardless of whether they win or lose the case.
The EU is a loyal and sincere partner of Indonesia. We support its 2030 Sustainable Development Goal (SDG) agenda and its 2045 goal to be a high-income country. We recognize the role played by palm oil and other commodities in providing jobs and income to millions of people in rural regions.
Contrary to what you write, the EU does not ban palm oil. The import of Indonesian palm oil, whether meant for food, consumer products or biodiesel, is largely tariff-free. Going forward, we are seeking to engage Indonesia and its palm oil industry in making sure that palm oil is produced sustainably and will not lead to deforestation. The approach of the recent EU proposal is forward-looking and pro-sustainable development, it will not penalize deforestation that happened in the past.
On nickel, the EU is contending that Indonesia’s export ban for this commodity flouts World Trade Organization legislation. Nickel is a vital requirement for the EU steel industry; without it, thousands of jobs can be lost. While we will pursue the EU interests here, we simultaneously support President Jokowi’s goal of growing the domestic downstream nickel industry.
In our view, however, the best — and WTO-compatible — way to do that is creating a strong climate for investment, both domestic and foreign. And between Indonesia and the EU, the best way to do that is to conclude the CEPA agreement as fast as we can.
Vincent Piket
EU ambassador to Indonesia
Jakarta
