Working towards mutually beneficial economic relations: Indonesia's expected challenges in pursuing an FTA with the EU

The document argues that while the 2009 Partnership and Cooperation Agreement (PCA) strengthens Indonesia's diplomatic standing, the subsequent pursuit of a Free Trade Agreement (IEUFTA) presents risks due to economic imbalances. It highlights that the EU favors extensive trade liberalisation, whereas Indonesia seeks to maintain policy space for development and faces hurdles such as EU non-tariff barriers and subsidies. The author suggests that for the IEUFTA to be beneficial, the EU must allow special safeguards, expand GSP schemes, and improve market access for Indonesian exports.

• The Partnership and Cooperation Agreement (PCA) signed in July 2009 is the first of its kind between the EU and an Asian country, covering trade, investment, human rights, and climate change, and serves as a precursor to resuming negotiations for the Indonesia-EU Free Trade Agreement (IEUFTA).
• There is a conflict in perspectives regarding economic development: the EU advocates for extensive trade liberalisation, while Indonesia is concerned about the significant implementation costs and the need to maintain sovereignty over trade, investment, and industrial policies to protect its development.
• Indonesian exporters face difficulties entering the EU market due to stringent non-tariff barriers and EU subsidies, despite generally low tariffs on non-manufactured agricultural products.

APA

Chandra,, A. C. (2009). Working towards mutually beneficial economic relations: Indonesia's expected challenges in pursuing an FTA with the EU. International Institute for Sustainable Development. https://www.iisd.org/publications/report/working-towards-mutually-beneficial-economic-relations-indonesias-expected

Chicago

Chandra,, Alexander C. Working towards mutually beneficial economic relations: Indonesia's expected challenges in pursuing an FTA with the EU. International Institute for Sustainable Development, 2009. https://www.iisd.org/publications/report/working-towards-mutually-beneficial-economic-relations-indonesias-expected.

Wikipedia

{{cite report |last1=Chandra, |first1=Alexander C. |title=Working towards mutually beneficial economic relations: Indonesia's expected challenges in pursuing an FTA with the EU |publisher=International Institute for Sustainable Development |date=9 September 2009 |url=https://www.iisd.org/publications/report/working-towards-mutually-beneficial-economic-relations-indonesias-expected |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chandra2009working, author = {Chandra,, Alexander C.}, title = {{Working towards mutually beneficial economic relations: Indonesia's expected challenges in pursuing an FTA with the EU}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = sep, url = {https://www.iisd.org/publications/report/working-towards-mutually-beneficial-economic-relations-indonesias-expected}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }