Indonesia, EU Urged to Finalize IEU-CEPA Negotiation, Shelve Unresolved Concerns

TEMPO.CO, Jakarta – Minister of Trade, Zulkifli Hasan, pushed for the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) this September. IEU-CEPA’s negotiation round has been ongoing for over nine years. 

“It’s not an ultimatum, we’re just saying that it will be harder during the new government,” Zulkifli, famously known as Zulhas, said on Thursday, September 26, 2024. “Pak Prabowo aims for crude palm oil to become B50.”

President-elect Prabowo Subianto previously promised to integrate palm oil into solar for 50 percent, or what is known as Biodiesel 50 or B50. With this program, Prabowo claimed, there’s no need for solar import for Indonesia. “CPO will become insignificant,” Zulhas said.

According to Zulhas, Indonesia has conceded to various requests from the EU during IEU-CEPA negotiations. The European Union, however, constantly added to its requests, causing the negotiation process to stagnate. 

“We want the IEU-CEPA to conclude as soon as possible, but it depends on (the EU side),” he said. “(We are aiming) to finish this week, but if the EU refuses to concede then it’s not possible.”

The Director General of International Trade Negotiation, Djatmiko Bris Witjaksono, said the IEU-CEPA negotiation process is obstructed by the lack of common ground between Indonesia and the European Union at the policy level. 

“Several discussions about policies are indeed unresolved, as we keep trying to find common grounds,” Djatmiko said in a press conference on Wednesday, September 25.

These unresolved discussions concern Europe’s hopes for Indonesia to reimplement relaxation and the EU deforestation regulation. Djatmiko said to resolve these issues, Indonesia and the European Union could shelve the discussion and first ink the IEU-CEPA. The agreement, he said, is subject to amendment.

HAN REVANDA PUTRA

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