The Trade Support Facility, or what is known as ARISE+Indonesia, is one of the flagship initiatives under the 2014-2020 European Union-Indonesia cooperation framework which is also part of the overall cooperation framework between the European Union and the ASEAN Secretariat that exists between the European Union and ASEAN members. ARISE+Indonesia is a special collaboration between the European Union and Indonesia which plans ASEAN economic integration.
The European Union and Indonesia have good relations in building cooperation. This collaboration aims to overcome financial, socio-economic and global development problems. Bilateral relations between the European Union and Indonesia have been established since 2014, with the implementation of the Partnership Cooperation Agreement, in order to build an inclusive economy, promote good governance, protect the environment, fight the impacts of climate change, support civil society and advance basic education.
Benefits obtained by Indonesia in the ARISE+Indonesia Collaboration
ARISE+Indonesia aims to increase Indonesia’s capabilities in an effort to increase cooperation and trading power. This effort is carried out through two technical assistance projects where these two projects are interconnected, in 2019 the first assistance began to be disbursed, namely EUR 9 million for a four year implementation period, and the second assistance amounted to EUR 4.7 million on 2 August 2021 with a period of two half year. ARISE+ Indonesia gives priority to the Indonesian government in accordance with the agenda that has been set with the European Union in the cooperation framework that has been stipulated in the bilateral agreement that has been approved by both.
Creating Indonesian institutional capabilities to coordinate and implement trade and investigative policies, support the national development planning process where this support includes capital and economic forecasting in collaboration with Oxfotd Economics also in collaboration with ARISE Plus Indonesia has developed two economic models under the auspices of BAPPENAS ( the central agency related to planning strategy, and the ministry of trade, which is Indonesia’s negotiator for the Comprehensive Economic Partnership Agreement (CEPA). This collaboration allows BAPPENAS to be able to assess the impact caused by this on the domestic economy.
ARISE+Indonesia provides CEPA negotiation support through technical assistance in several areas, including trade negotiations, trade in services, and Non-Tariff measures. Indonesia-EU CEPA negotiations are progressing well to assess CEPA’s potential for Indonesia’s trade, economic and social indicators. More importantly, the study also provides recommendations on how to maximize the benefits of this agreement. ARISE+Indonesia is developing capabilities among Indonesian Ministry of Trade officials to conduct analysis related to trade in services, this in light of ongoing negotiations and implementation of commitments, by specifically training trade officials in conducting quality trade research, to access and analyze information and data about International trade in services.
Assist Indonesia in carrying out its policy objectives related to the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) and broader trade facilitation related matters, as well as improving technical expertise and skills to handle complex trade safeguards (Trede Remedies) cases, harmonizing trade procedures and implementing standard rules as well as drafting technical regulations with international standards in order to increase the competitiveness of Indonesian exports, empower small producers and increase Indonesia’s competitiveness through the promotion of Geographical Indications as a form of product authenticity and premium quality and increasing the knowledge of domestic companies to actively participate in international trade.
From the information above obtained from the official ARISE+ Indonesia website, it can be seen that there are many benefits gained by Indonesia as a partner, but it is not explained in detail the benefits obtained by the European Union as a partner in this collaboration, let’s examine what benefits are obtained by the European Union in the ARISE+ Indonesia collaboration considering that it is impossible to establish cooperation between two parties if the cooperation is not beneficial for both parties.
Reducing barriers in the European Union’s trade process in Indonesia, Indonesia has a lot of human resources which of course also have a need for products for survival, therefore the European Union deliberately helps or supports standards and regulations in Indonesia that are in accordance with international standards so that European Union products can enter easily, without having to incur other costs. From data obtained, the European Union is Indonesia’s largest import country, which in 2021 reached US$ 11.1 billion. This figure is up 9% from 2020, with the largest import coming from Germany.
Establishing good relations with Southeast Asia, even though it is seen that the European Union has many problems with the European Union, the European Union contributing to the Indonesian economy means that the European Union also gets good views from Southeast Asia, the European Union is trying to maintain its regional stability which is stability This region is important in the European Union’s economy and geopolitics to expand the European Union’s wings in the economic and geopolitical fields.
Through ARISE+ Indonesia the European Union can strengthen its economic relations with Indonesia, where Indonesia is one of the countries with the largest economy in Southeast Asia, forming sustainable cooperation EU-Indonesia Cooperation Publication 2022-2023 The European Union and Indonesia are negotiating a Comprehensive Economic Partnership Agreement (CEPA) to open up wider opportunities for cooperation and strengthen relations between both parties in the economic, social and environmental fields. For example, in bilateral trade and investment activities, investment activities carried out by the European Union through the European Investment Bank and also through the approach of financial institutions in European Union member countries, can be seen during the 2019-2023 period, investment from European Union countries in Indonesia it reached USD 12.1 billion, the Netherlands was the largest investor country, namely USD 8.2 billion or 68.1%. The largest sectors for realizing this are electricity, gas and air (23%), communications and logistics (16%), chemical fiber and pharmaceutical industries (12%).
From the explanations above, it can be seen that the cooperative relationship between the European Union and Indonesia, specifically the ARISE+ Indonesia collaboration, has a strong and long-standing cooperative relationship and this cooperation is formed in the economic sector, with the European Union helping the development of the Indonesian economy. advantages in its economy, such as the European Union easily importing its products into Indonesia if the European Union helps Indonesia in technology that meets standards, to establish good relations with countries in the Southeast Asia region, it is necessary for the European Union to maintain regional stability considering the Union Europe also has many problems with countries in the Southeast Asia region and to strengthen the European Union’s economic relations with Indonesia by increasing investment in Indonesian countries the European Union will get big benefits if the investment goes well, therefore it is important for the European Union to help improve the Indonesian economy.
