According to the Swiss constitution, 50,000 signatures are required to challenge a legislative product through a referendum. The detractors of the I-EFTA CEPA have collected more than 59,000 signatures, and therefore, the referendum to annul the provisions on palm oil within the I-EFTA CEPA can be held.

In a rare occasion, the name of a country other than Switzerland, i.e. Indonesia, will be written on the ballot paper.

The Swiss government has constantly supported the I-EFTA CEPA. Out of eight political parties in the country’s parliament, five are in favor of the I-EFTA CEPA. Furthermore, the Swiss government has acknowledged the benefit of the I-EFTA CEPA for the Swiss economy, primarily for boosting trade and investment.

About 77.5 percent of Switzerland’s current exports to Indonesia will enjoy zero tariffs if the I-EFTA CEPA comes into force. Should the I-EFTA CEPA fail to be implemented, it will also affect the credibility of the Swiss government in future international trade negotiations.

The initiator of the referendum, an alliance led by Swiss farmers’ union Uniterre and winegrower Willy Cretegny, has accused Indonesia’s palm oil industry of maintaining unsustainable practices such as deforestation and worker exploitation. The indictment has been refuted by Indonesia, including by Indonesian Ambassador to Switzerland Muliaman Hadad, who stressed that the standard of Indonesia Sustainable Palm Oil (ISPO) is significantly stricter than the global standard of sustainability stipulated in the Sustainable Development Goals (SDGs).

Palm oil is indeed a highly strategic commodity for Indonesia. It supports the livelihoods of more than 16 million Indonesian smallholders and workers. Palm oil’s export value of US$14.7 billion accounts for 8.8 percent of Indonesia’s total exports.

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