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Indonesia-Switzerland Commitment on Economic and Environmental Sustainable Issues

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Authors: Ica Cahayani and Agata Nina Puspita*

Indonesia and Switzerland’s commitment to sustainable economic and trade cooperation has started since the rising issue from cocoa to sustainable Indonesian palm oil. Through the cooperation, both countries discussed Indonesia’s strategic content in managing palm oil in the amidst of Indonesia’s oil scarcity. Palm oil has become Indonesia’s reliable commodity which has a high global value chain. In addition, the circulation of palm oil trade has become one of international concerned because of its useful functions. One of the countries, which is interested to be involved in resolving the problems of palm oil and cocoa, especially related to environmental and health issues in Indonesian plantation commodities, is Switzerland.

In the cocoa sector, Switzerland has facilitated the training of approximately 160,000 cocoa farmers in sustainable agricultural practices and has resulted in an increase in annual yields of 49%. Switzerland contributes to the establishment of sustainable value chains, the response related to gender in the management of public resources, the use of new technologies and environmentally and climate sensitive budgeting. Switzerland aims to help Indonesia in resolving development challenges. Besides, Switzerland is also intended to make Indonesia become more competitive, resilient, resource efficient, and thus become an increasingly important political and economic partner for Switzerland as a country concerned with sustainable economic development and the environment (State Secretariat for Economic Affairs SECO, 2021).

The meeting between Indonesia and Switzerland on 24 February 2022 through the 9th meeting of the Joint Economic and Trade Commission (JETC) discussed global supply value chain issues in relation with Indonesian palm oil. Through a statement, Directorate General of American and European Affairs, Ministry of Foreign Affairs of the Republic of Indonesia hoped that Switzerland’s government would be able to receive Indonesian Sustainable Palm Oil (ISPO) certification as one of the four certifications which had been recognised in the Switzerland Palm Oil Ordinance. Switzerland has a commitment to help Indonesia to increase the capacity of Indonesian small-scale farmers through the 2021-2024 development cooperation scheme (Ministry of Foreign Affairs of the Republic of Indonesia, 2022).

Indonesia and Switzerland discussed cooperation programmes, which is followed by the implementation of a comprehensive economic partnership agreement based on a sustainable economy. Both countries share similar interests, considering that Switzerland is a leading country in the environmental and health sector while Indonesia has palm oil plantations which promise superior mutual benefits.

The evidence of economic and trade cooperation between Indonesia and Switzerland is shown through the investment by Switzerland’s government to Indonesia, which has increased four times and reached US$576.3 million and it has made the trade balance continue to increase. Developing the commitment through sustainable palm oil cooperation requires a legal agreement which binds both Indonesia and Switzerland. On the other hand, it is not enough to have a commitment because it also needs an agreement through European Free Trade Association (EFTA). Bilateral cooperation between the two countries must be accompanied by a commitment of a legal agreement. It is due to the problem of resolving palm oil issue. In other words, it is not a short-term cooperation. According to Schwartz and Sykes in a book entitled “The Economic Structure of Renegotiation and Dispute Resolution World Trade Organization”, it is stated that an international agreement between two or more countries in signing a contract seeks to maximise mutual benefits for the state parties (Schwartz & Sykes, 2002.p.179), . In addition, in his book entitled “The Design of International Agreement”, Andrew T. Guzman said that international agreements contain a mechanism for dispute resolution procedures between countries that enter into agreements to maximise the relationship and benefits of two countries or more countries. For that reason, it is important for Indonesia and Switzerland to make a legal agreement in cooperation which has been carried out since 2009 in order to increase the strength of relations and the benefits of economic and trade cooperation between the two cooperation (Guzman, 2005, p.586).

Indonesia continues to boost this cooperation with the consideration that Indonesia has an abundant palm oil but has not provided maximum benefits, starting from health problems related to palm oil, environmental issues and many more. Thus, it is important for Indonesia to cooperate with Switzerland in order to improve sustainable Indonesian palm oil and, also, to increase and to maximise exports in the field of palm oil product management.

Furthermore, another problem facing by Indonesia nowadays is the scarcity of oil in Indonesia which continues to increase and invites various controversies in society. The issue of palm oil scarcity in Indonesia is allegedly because of the impact of Covid-19 pandemic. In connection with that, resolving the scarcity of oil requires a lot of investment, especially Switzerland which will not only have a financial impact but also will bring sustainability to palm oil in the fields of health and environmental issues. The cooperation between Indonesia and Switzerland is critical due to effectively reducing the long-term problem of palm oil and oil scarcity in Indonesia. In addition, Switzerland will also assist Indonesia in creating a circulation of palm oil exports in order to reach the global market by providing logistical assistance and opening direct shipping lanes for Indonesia.

Bilateral cooperation between Indonesia and Switzerland will not have a direct impact on oil scarcity, but in the long term, it will have an effective impact because the cooperation and commitment of the two countries in sustainable issues is important for Indonesia’s palm oil commodity. Besides, the cooperation between the two countries has long existed since 2009 which was marked by the signing of MoU in the Joint Economic and Trade Commission (JETC) on 24 November 2009. It continuously happened through the visitation of Switzerland’s President to Indonesia in 2010 to confirm the cooperation between Indonesia and EFTA which focuses on tourism cooperation.

Indonesia and Switzerland also cooperate in improving the cocoa farming of the two countries. The cooperation has been carried out since 2015 in order to reduce poverty and greenhouse gases in the cocoa farming sector. The collaboration was carried out in several cocoa production areas in Indonesia, such as in West Sulawesi and Southeast Sulawesi. The cooperation is called the Green Prosperity Program Cocoa Production Sustainability (GP-SCPP). This cooperation is committed to reduce poverty and to empower cocoa farmers who experienced a decrease income due to the increasement of greenhouse effect or global climate change in 2015 which happened both in Indonesia and Switzerland.

Supported by similar state’s interest, Indonesia and Switzerland legalise the cooperation in the framework of a legal international agreement. The relationship between the two countries is not only the relationship between the government but also people to people contact. Indonesia has become one of Switzerland’s priority countries through the Indonesia Cooperation Program 2021-2024 by financial support of CFH 65 million. ICP focuses on the promotion of inclusive and sustainable development, effective public institutions and the development of Micro, Small and Medium Enterprises. The two countries continue to foster cooperative relations to produce a comprehensive trade agreement between the two countries.

*Agata Nina Puspita, Student of Department of International Relation, Gadjah Mada University, Indonesia  

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Southeast Asia

Reclaiming our future

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The Asia-Pacific region is at a crossroads today – to further breakdown or breakthrough to a greener, better, safer future.

Since the Economic and Social Commission for Asia and the Pacific (ESCAP) was established in 1947, the region has made extraordinary progress, emerging as a pacesetter of global economic growth that has lifted millions out of poverty.

Yet, as ESCAP celebrates its 75th anniversary this year, we find ourselves facing our biggest shared test on the back of cascading and overlapping impacts from the COVID-19 pandemic, raging conflicts and the climate crisis.  

Few have escaped the effects of the pandemic, with 85 million people pushed back into extreme poverty, millions more losing their jobs or livelihoods, and a generation of children and young people missing precious time for education and training.

As the pandemic surges and ebbs across countries, the world continues to face the grim implications of failing to keep the temperature increase below 1.5°C – and of continuing to degrade the natural environment. Throughout 2021 and 2022, countries across Asia and the Pacific were again battered by a relentless sequence of natural disasters, with climate change increasing their frequency and intensity.

More recently, the rapidly evolving crisis in Ukraine will have wide-ranging socioeconomic impacts, with higher prices for fuel and food increasing food insecurity and hunger across the region.

Rapid economic growth in Asia and the Pacific has come at a heavy price, and the convergence of these three crises have exposed the fault lines in a very short time. Unfortunately, those hardest hit are those with the fewest resources to endure the hardship. This disproportionate pressure on the poor and most vulnerable is deepening and widening inequalities in both income and opportunities.

The situation is critical. Many communities are close to tipping points beyond which it will be impossible to recover. But it is not too late.

The region is dynamic and adaptable.

In this richer yet riskier world, we need more crisis-prepared policies to protect our most vulnerable populations and shift the Asia-Pacific region back on course to achieve the Sustainable Development Goals as the target year of 2030 comes closer — our analysis shows that we are already 35 years behind and will only attain the Goals in 2065.

To do so, we must protect people and the planet, exploit digital opportunities, trade and invest together, raise financial resources and manage our debt.

The first task for governments must be to defend the most vulnerable groups – by strengthening health and universal social protection systems. At the same time, governments, civil society and the private sector should be acting to conserve our precious planet and mitigate and adapt to climate change while defending people from the devastation of natural disasters.

For many measures, governments can exploit technological innovations. Human activities are steadily becoming “digital by default.” To turn the digital divide into a digital dividend, governments should encourage more robust and extensive digital infrastructure and improve access along with the necessary education and training to enhance knowledge-intensive internet use.

Much of the investment for services will rely on sustainable economic growth, fueled by equitable international trade and foreign direct investment (FDI). The region is now the largest source and recipient of global FDI flows, which is especially important in a pandemic recovery environment of fiscal tightness.

While trade links have evolved into a complex noodle bowl of bilateral and regional agreements, there is ample scope to further lower trade and investment transaction costs through simplified procedures, digitalization and climate-smart strategies. Such changes are proving to be profitable business strategies. For example, full digital facilitation could cut average trade costs by more than 13 per cent.

Governments can create sufficient fiscal space to allow for greater investment in sustainable development. Additional financial resources can be raised through progressive tax reforms, innovative financing instruments and more effective debt management. Instruments such as green bonds or sustainability bonds, and arranging debt swaps for development, could have the highest impacts on inclusivity and sustainability.

Significant efforts need to be made to anticipate what lies ahead. In everything we do, we must listen to and work with both young and old, fostering intergenerational solidarity. And women must be at the centre of crisis-prepared policy action.

This week the Commission is expected to agree on a common agenda for sustainable development in Asia and the Pacific, pinning the aspirations of the region on moving forward together by learning from and working with each other.

In the past seven-and-a-half decades, ESCAP has been a vital source of know-how and support for the governments and peoples of Asia and the Pacific. We remain ready to serve in the implementation of this common agenda.

To quote United Nations Secretary-General Antonio Guterres, “the choices we make, or fail to make today, will shape our future. We will not have this chance again.”

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Southeast Asia

Return of the Marcos and Great-Power Competition

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PNA photo by Joey O. Razon

Ferdinand Marcos Jr., more commonly known as “Bongbong,” won an outright majority in the recent presidential election in the Philippines. Son and name-bearer of former Philippine dictator Ferdinand Marcos paved the way for the country’s most notorious political dynasty’s shocking return to power. In the words of Filipino columnist Benjamin Pimentel, “It’s as if Kylo Ren emerged and the Empire is back in power.”

In announcing his desire to work for all people, Ferdinand Marcos Jr. said the world should judge him based on his presidency, not his family’s past.

“To those who voted for Bongbong, and those who did not, it is his promise to be a president for all Filipinos. To seek common ground across political divides, and to work together to unite the nation.” saidVictor Rodriguez, spokesperson for Marcos, in a statement.

However, the pragmatic words seem to have failed to sway the opposition as he faces countless accusations of election irregularities. Their opponents are horrified by Marcos’ brazen attempt to reinvent historical narratives from his family’s era in power. A protest against Marcos was staged by approximately 400 people outside the election commission on 10th May, primarily by students.

Human rights group Karapatan urged Filipinos to reject Marcos’ new presidency, which it sees as a product of lies and disinformation designed “to deodorise the Marcoses’ detestable image”.

HISTORY OF MARCOS: People Power” Uprising

Ferdinand Marcos Jr is not a new name in the Philippines’ political scenario. The “bloodless revolution” of 1986 in the Philippines that ousted the infamous dictator Ferdinand Marcos, was none other than Ferdinand Marcos Jr.’s father.

The world leaders at the time praised the mass demonstration after hundreds of thousands marched along EDSA streets to protest a fraudulent election. Through the People Power” Uprising, Filipinos proved that a peaceful uprising can challenge a ruthless dictatorship and overthrow military rule.

Marcos Jr and his family escaped to Hawaii following the rebellion and after his return to the Philippines in 1991, Marcos Jr served in congress and the senate. With his return to the Malacañang Palace in 2022, the world anxiously watches whether history will repeat itself or democracy will prevail as Marcos Jr. relentlessly defends his father’s legacy, refusing to apologise or acknowledge the atrocities, plunder, cronyism, and extravagant living, which resulted in billions of dollars of state wealth disappearing during the dictatorship.

MARCOS JR’S FOREIGN POLICY: Continuity or Change?

Considering his political alignment with Rodrigo Duterte, the outgoing President, who has been exceedingly vocal about his anti-Washington, pro-China stance, it is no secret Marcos Jr. favours Beijing. According to Richard Heydarian, a South China Sea observer and professor of political science, “Ferdinand ‘Bongbong’ Marcos Jr. is the only candidate who has signalled almost perfect continuity with the incumbent populist pro-China president in Malacañang.”

However, Marcos Jr seems to be a President that might play the game more strategically compared to his successor. Among Marcos’s many accolades for his father, one was maintaining a strong security alliance with Washington. Even though, he is politically aligned with Duterte who sought to pivot away from the United States and towards China, Marcos will seek a balancing act. Philippines under Marcos will continue engaging with China, in-line with Duterte’s Pro-China Policy but at the same time will engage, and even bolster a closer tie with the USA, to safeguard Philippines’ sovereignty amidst an aggressively rising China.

When asked if he would ask the American’s help in dealing with China, Marcos Jr said, “No. The problem is between China and us. If the Americans come in, it’s bound to fail because you are putting the two protagonists together.” This statement shows a sense of maturity and solid understanding of the ground realties of the region. Marcos Jr. seems to be the President that keeps his country’s national interest at the very core of all his decisions. He understands how easy it is for a small country to be stuck in the middle of a great-power competition, and that more often and not, it harms the small country’s interests. He envisions Manila as neither heavily dependent on Washington for its security needs nor become a pawn in China’s greater geopolitical ambitions. He wants to have an independent foreign policy, regardless of deepening U.S.-Chinese competition. One that predominantly benefits his country, Philippines.

In contrast to Duterte, Marcos Jr has a very warm and embracing approach towards the USA. Being treaty allies, Marcos Jr refers to their alliance as “a very important one.” He maintained that the alliance “has stood us in good stead for over a hundred years and that will never disappear from the Philippine psyche, the idea and the memory of what the United States did for us and fought with us in the last war.”

Marcos Jr seems to be a realist who understands that in International Politics, states must “engage whenever possible, and contain wherever necessary.” On asked about Chinese assertiveness in the South China Sea, he argued that “Philippines will not cede any one square inch to any country, particularly China, but will continue to engage and work on our national interest.”

To summarise, Marcos will, in all probability, modify Duterte’s foreign policy in a way that maximizes the strategic benefits for the Philippines and avoids confrontation with the USA and China.

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Southeast Asia

President Ho Chi Minh’s reflections about international peace

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President Ho Chi Minh had a dissimilar way of approaching international peace, and he held a view that the way western nations look into revolution and resurgence, particularly in colonial era, was different from what the people aspired. He took note of developments in colonial societies particularly when Turkish women were protesting against the invasion of Western nations and imperialism, and referred to Indian women protests against British domination way back in 1912. In fact, writing way back in 1918, he stated that the defence of India act was the suppression of genuine domestic grievances because it provided the right to arrest and detain suspected Indians. He was always very supportive of the workers and peasants’ movement across the world.

While congratulating the first Prime Minister of India Jawaharlal Nehru on organising the Asian relations conference, he stated that China and India were the big brothers of Vietnam and the most ancient civilizations.  Writing way back in March 25th 1947, he opined that solidarity will make the three countries the mightiest defenders forwards peace and democracy. He argued that Vietnam was aspiring for unification and independence, and hoped that the Asian countries will come to their support. He stated that it is pertinent for the neighbours to have friendly relations, and alluding to the five principles (Panchsheela) of Nehru-Chau Enlai joint statement, he added that the five major principles which were enlisted in the joint statement between China and India, and Myanmar and China need to be replicated in the larger Asian context.

After the conclusion of the war with French in 1954, he clearly stated that the major challenges for Vietnam was proper implementation of the Geneva accords and sustaining the economy to upgrade the living standards of the people of Vietnam. Responding to a question asked by a journalist related to Geneva accords implementation in Vietnam, he stated that France being a major country and a colonial power, it is pertinent that the ceasefire agreement is implemented fully and this will ensure trust between the signatories. It is also important that scrupulousness in such kind of agreement so as to bring about peace and tranquillity.

He had time and again alluded to the five Panchsheela principles whenever he was giving any interview to the journalists and scholars. He clearly stated that there is need to respect sovereignty and territorial integrity, refrain from violation of each other’s territorial borders, non-interference in internal affairs, equal treatment for mutual benefits and peaceful coexistence. He opined that taking inspiration from India-China agreement, Vietnam would be willing to implement a similar kind of five principles with other countries, primarily Cambodia and Laos. Related to the illegal occupation of Goa by Portugal, he criticized the illegal occupation of Goa by Portuguese and the support that the US has provided to Portugal for continuing illegal occupation.

He talked about solidarity among Asian and African people and stated that for peace to exist the Geneva agreement should be implemented in full. After the first Indochina war, he stated that it is important that the peace as per the provisions of Panchsheela should be implemented at all levels. He has always alluded to Buddha and Mahatma Gandhi while talking about peace, clearly demarcating the role of culture and religion in maintaining peace. He was clearly against western imperialism and occupation of territories by force by any major power. He was also very clear and in one of the letters written on the eve of an interview given to New Delhi people in India, he clearly specified that the situation of world development particularly after the independence of many developing countries was beneficial for the peace movement. He stated that more than 1200 million Asian African people were in the line of peaceful forces and these people were liberated including those in erstwhile Soviet Union and other socialist countries. He lauded the role played by Asian African countries in peace protection and always supported fight against colonialism and Asian people’s solidarity. He was completely against military race, prohibition against nuclear weapons and hydrogen bomb, dismissing aggressive military forces and demolishment of military bases in foreign countries.

His views with regard to arms reduction and working together to reduce the scourge of nuclear bomb were very specific. While responding to the welcome address during the banquet dinner hosted by president of India Rajendra Prasad in 1958, he stated that “the pugnacious forces has been conspiring to push the mankind to the destruction of war. They are ceaselessly fighting to keep and consoled at peace, India made a big contribution. Peaceful forces are more powerful able to prevent the war but the pugnacious forces do not give up their conspiracy to wage their war.” He was really appreciative of any of the peace initiatives undertaken by any country and he has repeatedly thanked international committee which was chaired by India for supervising and controlling Geneva accord implementation in Vietnam.

President Ho Chi Minh was appreciative of the fact that the essence of Buddhism and culture would strengthen the spirit of love towards the country, national solidarity, and bring about cultural essence which will bring closer the eastern and western cultures. He stated that in terms of Buddhism the core philosophy is peace and the construction of the country.

President Ho Chi Minh was specifically influenced by Buddhism and he had stated that the people should practice the life of holy learning and Buddhist simplicity. Even though president Ho Chi Minh did not write and reflected about Buddhism but his life and career were intertwined with the core philosophy of Buddhism. He was very much interested in implementing the idea of peaceful humanity under Buddhism and ushering in Buddhist consciousness in every society. Ho Chi Minh had an idea that the human affection would help in self-improving human ethics and closer bonding with a larger population. Ho Chi Minh’s ideology included mercy, non-egoism, altruism, self-improvement, exercise of moral ethics, and solidarity spirit among masses. The acknowledgement of Buddhism as the core fundamental of life was slowly acknowledged by the Vietnamese people too and as per Ho Chi Minh, he had acquired the Buddhist ideas from family, national tradition, and the Buddhist way for liberating the country.

Taken into cognizance President Ho Chi Minh objective of peace, he was very much concerned with regard to ethics, solidarity, guaranteeing supreme benefits of the nation, bestowing rights and benefits to the people and ingrained self-consciousness which would bring about sincere affectionate, straightforward introspection. This will help in self-criticizing and unifying characters for the larger benefit of the society. He stated that the national solidarity should be in Sync with the international solidarity. In this context it is important to reflect on the Russia Ukraine crisis and he has been very instrumental in referring to Mahatma Gandhi for his approach towards peace and self-suffering. However, Ho Chi Minh was very attached to this concept of abhorrence of repression of the people and was very critical of any kind of imperialism which would subdue people from realising their ambitions and goals. Ukraine crisis also shows a new kind of geopolitics which will define the world order but he was also critical of the fact that international solidarity should be progressive and aspire for a long-lasting peace.

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