The Minister of Trade, Zulkifli Hasan, has urged for the swift conclusion of the IEU-CEPA negotiations with the EU, which have stalled for over nine years due to increasing demands from the EU. He indicated that unresolved policy issues are hampering progress, with a call for both parties to finalize the agreement while addressing remaining concerns later. The importance of this agreement is emphasized with Indonesia’s energy plans linking crude palm oil to biodiesel initiatives.
In a recent call, Minister of Trade Zulkifli Hasan emphasized the necessity for expediting the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which has been under negotiation for over nine years. Hasan expressed that delaying this agreement will become increasingly challenging with the formation of a new government. He noted, “It is not an ultimatum, we are just stating that it will be harder during the new government.” President-elect Prabowo Subianto has previously indicated his commitment to enhancing the use of crude palm oil in Indonesia’s energy mix, aiming for a blend known as Biodiesel 50 (B50). Zulkifli asserted, “CPO will become insignificant” in the context of energy import dependencies. Despite Indonesia’s concessions to the EU’s various requests, further demands have continued to emerge, stalling progress on the deal. Zulkifli articulated a desire to conclude the negotiations, contingent on the EU’s willingness to compromise, remarking, “We want the IEU-CEPA to conclude as soon as possible, but it depends on the EU side.” Djatmiko Bris Witjaksono, Director General of International Trade Negotiation, highlighted that a lack of consensus on policy issues between Indonesia and the EU is impeding the agreement’s progress. He noted the need for ongoing discussions to identify workable solutions. Witjaksono suggested that Indonesia and the EU could proceed to sign the agreement while agreeing to address remaining policy concerns subsequently, indicating that the IEU-CEPA could be subject to future amendments.
The IEU-CEPA negotiations have been ongoing for nearly a decade, reflecting the complexities involved in reaching a mutually beneficial agreement between Indonesia and the European Union. The discussions are particularly challenging due to the varying interests and regulatory requirements of both parties. The focus on palm oil usage in Indonesia’s energy sector further complicates these negotiations, as the EU has expressed specific concerns regarding sustainability and environmental impact. The call for finalization by Minister Hasan indicates a pressing need for both sides to bridge their differences, especially in light of the upcoming changes in Indonesia’s government.
Minister Zulkifli Hasan’s appeal to finalize the IEU-CEPA reflects the urgency surrounding trade discussions between Indonesia and the European Union. As the negotiations face significant hurdles due to ongoing policy disagreements and additional requests from the EU, the prospect of concluding this partnership remains contingent upon the EU’s willingness to engage in compromise. The ongoing discussions highlight the complexities inherent in international trade negotiations and the critical nature of mutually beneficial agreements in promoting economic growth.
Original Source: en.tempo.co
