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.
Jokowi jets off to ASEAN-EU summit amid nickel, trade disputes
President Jokowi is likely to leverage Indonesia's position as ASEAN chair during the upcoming ASEAN-EU Summit in Brussels, Belgium, on Wednesday, experts say, amid disagreements on trade policies.
Change Size
President Joko “Jokowi” Widodo (third left) lays out his agenda alongside Vice President Ma’ruf Amin and several other officials during a pre-flight press conference at Soekarno-Hatta international airport on Dec. 13, before the president departed for the ASEAN-EU Commemorative Summit in Brussels, Belgium. (Courtesy of Presidential Secretariat Press Office/-)
T
he economy tops President Joko “Jokowi” Widodo’s list of priorities as he heads to Belgium on Tuesday for the ASEAN-European Union Summit, a voyage that could see him leverage Southeast Asia’s growing clout in a contest of principles and pragmatism with the EU.
The trip, in commemoration of the 45th anniversary of the ASEAN-EU relationship, takes place as Jakarta is embroiled in a nickel ore dispute with Europe, alongside other trade disagreements. With Indonesia holding next year’s ASEAN chairmanship, analysts have suggested that Jokowi might make strategic moves to sway the disputes in Jakarta’s favor.
However, with multiple crises to address next year, largely brought on by the Russian war in Ukraine, Jokowi has made it clear that disagreements with the EU will not stand in the way of ongoing business and cooperation.
“EU foreign direct investment in ASEAN in 2021 was valued at US$26 billion, the second-largest after China. That is precisely why we need to strengthen and elevate the two regions’ relationship,” Jokowi said ahead of his flight from Soekarno-Hatta international airport in Banten.
“Of course, Indonesia wishes also to advance trade between itself and the EU. This includes an increase in the EU’s investment in [Jakarta] as well,” he added.
One day prior, Indonesia had filed an appeal against a World Trade Organization (WTO) ruling that favored the EU in a dispute over Jakarta’s ban on nickel ore exports. With a total of 21 million tonnes in nickel reserves, Indonesia is among the world’s top producers of the mineral ore, and Jokowi’s vision of building a “big ecosystem” for the downstream nickel industry led to the restriction of raw material exports in early 2020.
And while the trade restriction boosted Indonesia’s earnings through the sale of processed nickel, Brussels argued that Jakarta had violated WTO rules and was injuring the European stainless steel industry. The EU eventually won the dispute, although Jokowi vowed that he did not mind going “a little bit crazy” in fighting for the restriction through numerous appeals.
