European Union

 

Public Policy and the Politics of Foreign Affairs - European Union (EU)

The development of bilateral relations between Indonesia and the EU can not be separated from domestic and regional dynamics developed in the EU and in Indonesia. On the one hand, the EU's enlargement to 27 nations on January 1, 2007 was a significant success for its role to help determine the map of global order.

On the other hand, Indonesia's domestic situation, characterized by economic recovery activities, the development of democratic processes and the emergence of security threats of separatism and terrorism threats, no doubt impact on the strategic foreign policy respectively.

In connection with the expansion of EU membership, Indonesia hopes it will not encourage the orientation of the European Union into "inward-looking" and reduce its cooperation with developing countries, especially with ASEAN and more specifically with Indonesia.

Indonesia expects that the expansion of EU membership is actually able to provide greater benefits to its external partners. Consolidation of the European Union is also a constructive factor in regional cooperation, both in the context of ASEAN relations - European Union as well as between Asia and Europe in the ASEM format.

In Indonesia-EU relations, there are several key themes that became a priority for Indonesia, namely: PCA (Partnership Cooperation Agreement), the case of banning Indonesian airlines flying, CSP (Country Strategy Paper) and the condition of bilateral trade and investment in Indonesia and the EU.

The development of Indonesia-EU relations Indonesia-EU bilateral relations have been initiated since 1967 under the ASEAN framework when the EU was still in the form of the European Economic Community (European Economic Community).

The development of Indonesia-EU relations can not be separated from the dynamics that developed in the EU and in Indonesia. On the EU side, the development of the EU is always busy with the activities of the expansion of the EU since 1957 to achieve the EU's ambition to unite all countries in Europe under the umbrella of the EU (EU-29) and the development of the global security situation makes the EU’s attention more focused on the common European.

In relation to developments in Indonesia, the democratic process in Indonesia was welcomed by the EU who view Indonesia as "a voice of democracy".

This view shows the appreciation of the EU towards the democratic process in Indonesia. Improved Indonesia-EU relations substance was also seen in the statement delivered by the Indonesia Foreign Minister and Dutch Foreign Minister / Presidency of the meeting in Jakarta, in August 2004. Both Foreign Ministers stated that both parties have a "common agenda" of democracy, human rights, environment, good governance, and anti-terrorism.

During the meeting in Jakarta in November 2007, President Susilo Bambang Yudhoyono and European Commission President Jose Manuel Barroso also confirmed that the relationship between Indonesia and the EU is a strategic partnership in playing an important role in the creation of peace, stability and development of the region and the world a whole.

Indonesia-EU relations show an important development in 2005, which was characterized by a very rapid response from EU in providing humanitarian assistance to victims of the tsunami disaster in Aceh and Nias.

The EU also supports the peace process in Aceh, which produces the Memorandum of Understanding signed by representatives of the Government of Indonesia and GAM in Helsinki, Finland, dated August 15, 2005. EU’s support to the implementation of the Memorandum of Understanding was also shown by the EU's participation in the Aceh Monitoring Mission (AMM) along with some ASEAN countries (Malaysia, Singapore, Thailand, Brunei Darussalam) and of course the reintegration of former GAM members.

The EU also participates in monitoring the elections in Aceh on December 11, 2005 by sending EU - Election Observation Mission (EOM). Secretary General of the EU Council states that "The AMM is a new departure for the EU in more than one ways. Not only it is the first time that the European Union has deployed a mission in Asia, it is also the first time that we have worked in partnership with countries from the Association of South East Asian Nations (ASEAN). Five ASEAN countries: Brunei, Malaysia, the Philippines, Singapore and Thailand, provided monitors alongside the participating European Countries ".

Since 2000 the EU has shown a desire to improve bilateral relations with Indonesia. It was stated in the 2000 EU Communication entitled "Developing Closer Relations Between Indonesia and the European Union" which is a further elaboration of its strategy in Asia, as outlined in the EC Communication entitled "Europe and Asia: A Strategic Framework for Enhanced Partnership".

Indonesia welcomed the EU's desire in recognition of developments in Indonesia. Agreement of both parties to improve the relationship is also reflected in the "Ministry - EU Joint Declaration" meeting Foreign Minister - Commissioner for External Relations (EC) in Luxembourg on June 14, 2000, which agreed to increase Indonesia-EU dialogue through the Bilateral Consultative Forum (Bilateral Consultative Forum / FKB ).

The forum discusses issues on prioritizing bilateral issues, particularly joint efforts to increase trade, investment and development cooperation and political dialogue. The entry of the agenda of the political dialogue gives new "color" in the Indonesia-EU relationship.

EU deems that its relationship with ASEAN and Indonesia can still be improved. Within this framework, the EU makes a comprehensive new approach to improve bilateral relations with countries in Southeast Asia in various fields, including political, economic, and cultural aspects.

 

EU’s wish to establish a bilateral treaty is understandable considering that this bilateral cooperation with EU countries in the region is still based on the framework agreement of cooperation in ASEAN, namely "EU - Indonesia, Malaysia, the Philipinnes, Singapore, and Thailand Cooperation Agreement (ASEAN member countries ) "which was signed in Kuala Lumpur on March 7, 1980.

Inauguration of the comprehensive partnership is then discussed by both parties in the meeting of Minister of Foreign Affairs with the EU Troika Foreign Minister in Jakarta in March 2005 which is a manifestation of the EU Council Resolution mentioned above.

During the meeting, both sides agreed to establish framework agreement on comprehensive partnership and cooperation (PCA) which will be a solid legal basis for the development and improvement of cooperation between Indonesia and EU in the future.

In line with the development cooperation Ministry - which has been extended to EU political dialogue, it is fitting to say that the partnership between both parties is comprehensive, in various sectors. Therefore, the substance of the agreement is not only about the areas of technical cooperation in the sector and development cooperation, but also in the political sector such as the promotion of human rights, legal cooperation, non-proliferation of weapons of mass destruction and counter-terrorism security in particular.

PCA negotiation was last held in Hamburg, Germany, May 28, 2007 and continued with diplomatic talks on June 12, 2007 to approve the final version. However, the process of signing Indonesia-EU PCA has not been as expected because of the decision of the EU Aviation Safety Committee which issued a ban for Indonesian airlines to operate in the territory of member states into force on July 6, 2007, several days ahead of schedule to sign PCA document which was supposedly held in Jakarta on July 17, 2007.

Decision of the ban takes effect July 6, 2007 by Commission Regulation (EC) No. 787/2007 dated July 4, 2007. After going through the negotiation effort and improvement efforts undertaken by Indonesia Department of Transportation, in meeting the ASC (Air Safety Committee) dated 30 June to 2 July 2009 in Brussels, recommendation for a partial repeal flight ban in Europe for the fourth national airline of Indonesia, namely Garuda Indonesia, Mandala Airlines, Premiair and Airfast Indonesia has been established.

Through regulation No.619/2009 dated July 13, 2009 that has been published in the Official Journal of the European Union and entered into force on July 16, 2009, the European Union has officially abolished the ban to fly for four (4) Indonesia airlines.

Encouraging results of the ASC recommendation in Brussels resulted after a delay of over two years, Indonesia and the European Union finally agreed to do the signing on Comprehensive Partnership Document (Comprehensive Partnership and Cooperation Agreement) dated July 14, 2009 in the final ceremony of the 8th Bilateral Consultation Forum (FKB ) between Indonesia-EU in Yogyakarta.

Comprehensive Partnership is a document that contains the commitment of both sides to enhance bilateral relations in a more organized and measurable way through the setting of priorities and modalities of cooperation in order to achieve the targets set together.

Partnership and Cooperation Agreement (PCA) between Indonesia and European Union (EU) has finally been signed on November 9, 2009 by the Minister of Foreign Affairs and Minister of Foreign Affairs of Sweden (as the EU president). The structure of this agreement consists of seven Chapters and 50 Articles covering cooperation in various fields, including politics (human rights, counterterrorism, the prohibition of weapons of mass destruction proliferation, prevention of corruption, law, etc.), as well as technical cooperation (such as economics, trade and investment, industry, forestry, environment, transportation, health, science and technology, education, tourism, etc..) in order to develop and enhance cooperation in Indonesia-EU relations as a comprehensive partner.

The signing of the PCA is one of the important achievements in the Indonesia-EU bilateral relations, considering that Indonesia is the first country in ASEAN that has a comprehensive agreement with the EU on this. Currently, the EU still make the process of negotiation among ASEAN countries like Thailand, the Philippines, Singapore, Vietnam, and Malaysia.

The documents of Indonesia-EU Joint Statement issued after the signing of the PCA contains 4 (four) of short-term priorities of cooperation that began in 2010, namely:

  1. trade and investment; explore further the scope of the new collaboration including research and development projects.
  2. environment; enhance environmental cooperation on sensitive issues such as forestry and fisheries and in order to build mutual commitment based on the UNFCCC.
  3. education; empowering educational programs that already exist such as Erasmus Mundus scholarships and research projects
  4. human rights and democracy; discuss the development of human rights of common concern at the level of senior officials (SOM).

 

PCA Agreement will become legally binding document (legally binding) after ratification by all parties before it can be applied in full (entry into force), as stated in Article 48. RI-EU PCA involving 29 parties in the process of ratification, namely Indonesia, the European Parliament and all 27 EU member states.

Comprehensive Partnership also reflects the consolidation of bilateral relations between Indonesia and European Union. Bilateral Consultative Forum (Indonesia - EC SOM) - the joint efforts of Indonesia- EU to enhance bilateral cooperation in trade, investment and development cooperation was carried out through the Senior Officials Meeting Bilateral Consultation Forum (FKB) Indonesia - the European Commission.

Indonesia sees FKB important as a means to discuss in more focused the efforts to improve relations and cooperation between Indonesia - EU.

On December 7, 2010 the 9th meeting of FKB Indonesia-EU in Brussels to discuss the various issues that were achieved during the previous year (from the meeting FKB / SOM to -8 to FKB / SOM to-9) was held. The meeting also identified several priorities for 2011, among others, the completion of the Horizontal Agreement on Air Services and the completion of FLEGT / VPA as well as the implementation of MIP 2011-2013.

Development Cooperation RI - EU

The development cooperation of Indonesia - EU is one of the main pillars of Indonesia-EU bilateral relations. The development of relations between Indonesia - EU is also reflected in the focus of Indonesia - EU development cooperation that is recipient driven and tailored to Indonesia’s national development programs.

The EU underlines the need to build a new relationship more closely with Indonesia through increased development cooperation program that supports the process of democracy, good governance, sustainable economic and social development and poverty eradication.

Indonesia-EU good relation is reflected in development cooperation set out in the Country Strategy Paper (CSP), which contains a joint strategy to support national development. CSP year 2002-2006 is intended to strengthen democracy and improve good governance through the support to economic, social and environmental development.

CSP 2002-2006 set out in National Indicative Programme (NIP) consists of two annual cooperation programs. In the NIP 2005-2006, there are three priorities: education cooperation, law enforcement and security, economic cooperation in particular the management of public funding, with a project value of 72 million Euros.

As a follow-up to the end of the CSP program during the period 2002-2006, the EU has adopted the CSP program period of 2007-2013 which focuses on the education sector, trade and investment, as well as law enforcement and good governance. EU Commissioner of Foreign Relations, Ms. Bennita Ferrero Waldner on May 15, 2007 had sent a letter to Foreign Minister that the European Commission has approved the preparation of the CSP 2007-2013 for Indonesia as well as the Multi-annual Indicative Programme 2007-2010.

In a statement, Ferrero stated that the European Commission will increase financial aid in development cooperation amounted to 494 million euros in the 2007-2013 CSP program as well as 248 million euros in the Multi-annual Indicative Programme 2007-2010.

CSP 2007-2013 was signed on the visit of European Commission President Jose Manuel Barroso on 23 November 2007 in Jakarta.

In the period 2007-2010 three prioritized areas of Multiannual Indicative Programme (MIP) are agreed, with a total grant of € 248 million. The cooperation includes Basic Education (€ 198 million), Economic Development (€ 30 million), and Law Enforcement and Judicial Reform (€ 20 million).

As a result of meeting of Working Group on Development Cooperation (WGDC) in Brussels, dated December 6, 2010, a Multiannual Indicative Programme (MIP) document of the second (period 2011-2013) worth 200 million Euros has been signed. Both sides confirmed the importance of implementing the principles of Aid Effectiveness in cooperation projects as contained in the Paris Declaration and Jakarta Commitment the 2nd Multiannual Indicative Programme (MIP) (2011-2013) focusing on the education sector support (€ 144 million), trade and investment (€ 25 million), law enforcement (€ 16 million), and climate change (€ 15 million). Broadly speaking, the fields of development cooperation undertaken by the European Union to support each goal achievement of the Millennium Development Goals (government and civil society, education, health, environment and climate change, water supply and sanitation, trade and economic cooperation).

The role and interests of Indonesia in the EU

EU as a form of regional cooperation in the European region with 27 member states, 499 million population, GDP of 16.8 trillion euros (28% of world GDP) has become a major force of economic and global politics. Currently the EU is the world's largest trading power which controls 20% of global import-export value.

EU member countries consist of Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Cyprus, Slovakia, Slovenia, Spain, Sweden, Britain, Bulgaria and Romania.

For Indonesia, the EU is still an important market and one of the main sources of foreign investment in Indonesia. Bilateral trade in 2010 reached USD 28.20 billion and continues to show an increasing trend from year to year.

The EU is Indonesia's potential export market destination. The EU is a major market for Indonesia, largest after the United States and Japan. Total trade between Indonesia and the EU in 2010 amounted to U.S. $ 26.8 billion (exports U.S. $ 17.1 billion and imports U.S. $ 9.8 billion), increased by 21.35% compared to the year 2009 amounted to U.S. $ 22.1 billion. Trends in total trade between the two countries during the last 5 years (2005-2010) showed a positive rate of 10.4%.

 

The development of bilateral relations between Indonesia and the EU can not be separated from the dynamics of the developments that occurred in the European Union (EU) and Indonesia. The EU has succeeded as a solid regional grouping; continue to carry out consolidation through the process of integration in the fields of politics and economics to achieve his ambition to unite all countries in Europe under the EU umbrella.

Similarly, Indonesia's democracy, stable and recognized by the international community as an important partner in the region, both of which are important actors that continue to strengthen partnerships closer together in order to be better able to respond to global challenges.

Linkage problems and interests between Indonesia and the EU have created a common agenda to strengthen the bilateral cooperative relations of mutual benefit.

EU considers Indonesia as a democratic country with the world's largest Muslim population, potentially as a catalyst for regional security stability. EU considers Indonesia has a strategic role for the maintenance of stability and security in the region.

EU's attention to political developments in Indonesia is generally a matter of democracy, good governance and human rights enforcement. The EU has also paid attention to and support for Indonesia's efforts to combat terrorism and provide support to the development that occurred in Indonesia.

On the other hand, Indonesia sees the EU as a global economic and political power that can be a partner to support the achievement of national interest. Increasing the EU's role in both global and regional context is the embodiment of one of the goal formation, which is to affirm the role of Europe in the world.

EU multilateralism approach retains Indonesia as an important partner in responding to global issues. In terms of external relations with Asia, in recent years the EU showed its ambitions to increase its political role in Southeast Asia by enhancing cooperation with ASEAN in order to create "an international order based on effective Multilateralism".

Indonesia is seen as a country that has a strategic role for efforts to maintain stability and security in the region. EU relations with Indonesia have been established within the framework of EU cooperation - ASEAN, ARF and ASEM.

Change of leadership and more democratic reformers in Indonesia was welcomed by the EU because it is an opportunity for the EU to conduct political dialogue with Indonesia.

EU's attention to political developments in Indonesia is generally a matter of democracy and human rights. In addition, with regard to the emergence of the issue of terrorism, the EU has also paid attention and support Indonesia's efforts to combat terrorism.

Especially with regard to security issues and separatism in Aceh, Maluku and Papua, the EU and its member states have expressed their support for the Homeland and support efforts to gain peace through dialogue.