DEVELOPMENT COOPERATION

A joint commitment to the Sustainable Development Goals

EU development cooperation with Indonesia is based on common goals and shared interest to address global challenges and support sustainable development, which is aligned with the EU’s regional cooperation initiatives, including the EU-ASEAN strategic partnership.

EU-Indonesia bilateral cooperation is complemented with partnerships with development banks to boost sustainable investing and capacity-building. The EU and its Member States under the umbrella of Team Europe supports Indonesia’s response to the COVID-19 crisis with over €200 million to provide emergency assistance, strengthening the capacity of Indonesia’s health sector in mitigating the impact of COVID-19 pandemic and its preparedness for future pandemics.

capacity of Indonesia’s health sector in mitigating the impact of COVID-19 pandemic and its preparedness for future pandemics.

Under a series of thematic programmes, the EU continues to support Indonesia’s development policies, including the Medium-Term National Development Plan (RPJMN), the SDG Action Plan and its Nationally Determined Contribution (NDC). NDCs embody efforts by countries which have signed up to the Paris Agreement to reduce emissions, increase climate resilience and adapt to the impacts of climate change.

Economic Cooperation

Indonesia, as the seventh largest economy in the world, remains a vital partner for the EU with economic cooperation forming the cornerstone of the EU-Indonesia partnership.

Currently under negotiation, the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia will create access to new market opportunities, increase trade and expand direct investment between the two countries.

One of the EU’s flagship initiative under the EU-Indonesia cooperation framework is the ARISE+ Indonesia – Trade Support Facility (ARISE+ Indonesia). With an overall budget of €15 million, the programme aims to enhance Indonesia’s capacity to boost trade performance and competitiveness. Priority areas of ARISE+ Indonesia includes strengthening Indonesia’s institutional capacities to coordinate and implement trade and investment policies and supporting trade facilitation in the context of the World Trade Organization’s Trade Facilitation Agreement (WTO TFA). The initiative also works with Indonesia’s businesses and institutions and provide support to the improvement of export quality infrastructure both at the provincial and national level to increase Indonesia’s export competitiveness.

Organization’s Trade Facilitation Agreement (WTO TFA). ARISE+ Indonesia supports Indonesian businesses and institutions to improve export quality infrastructure both at the provincial and national level to increase Indonesia’s export competitiveness.

European businesses through EuroCham and EU-Indonesia Business Network (EIBN) are also partnering with Indonesian businesses and government counterparts to contribute to Indonesia’s sustainable development goals and improving the resilience of Indonesia’s businesses in weathering the economic impact of the pandemic.

To further support Indonesia’s efforts to mitigate the socio-economic impact of the pandemic, the EU is working together with Indonesian government counterparts and civil society to strengthen Indonesia’s vulnerable communities whilst alleviating poverty through inclusive and sustainable economic development.