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

This research paper examines the economic relationship between Indonesia and the European Union following the July 2009 signing of a Partnership and Cooperation Agreement (PCA), highlighting the challenges Indonesia faces in pursuing a Free Trade Agreement (IEUFTA) due to economic imbalances and differing views on trade liberalization.

• The Partnership and Cooperation Agreement (PCA) signed on 13th and 14th July 2009 in Jogjakarta 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 fundamental disagreement between Brussels and Jakarta regarding the path to economic development: the EU advocates for extensive trade liberalization, whereas Indonesia is concerned about the significant costs of implementation and the need to maintain policy space to determine its own trade, investment, and industrial policies.
• Indonesian exporters face challenges in the EU market due to stringent non-tariff barriers, despite generally low tariff rates on non-manufactured agricultural products. The author suggests that for the IEUFTA to be beneficial, the EU must improve market access, expand the GSP scheme, allow subsidies for small-scale agricultural producers, and ensure civil society participation.

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} }