Presentasi aepf (suchjar effendi)

ASIA - EUROPE PEOPLE’S FORUMSUB-REGIONAL CONFERENCE

GoetheHaus Jakarta, 28 - 29th June 2012

Organized By : Joint Committee IGJ &SPI, API, KIARA, INKRISPENA, PRP, WUSKI

Comprehenship Economic Partnership Agreement (CEPA)

INDONESIA FOR GLOBAL JUSTICE

AEPF

• The relationship between Indonesia with EU countries has been for the last four centuries

• The growing relationship of the nature of the relationship of colonialism in the past, become a relationship which is designed on the principles of cooperation.

• So many efforts were made on both sides to build agreement in order to increase trade and investment between both of them

• In November 2009 EU-Indonesia has signed a Partnership and Cooperation Agreement (PCA) in various sectors.

• Indonesia and the EU plans to develop cooperation more specific and comprehensive in the economic sector, that came to be called by Comprehenship Economic Partnership Agreement (CEPA).

Development of the CEPA Indonesia - EU

The scope of the cooperation between Indonesia - EU in general

• Economic cooperation;

• Cooperation on the scope of Investment (Focus on the elimination of barriers to investment);

• European Investment Bank - Participate in the implementation of the Union's development aid and cooperation policy for long-term loans;

• Cooperation in the sectors of economic liberalization and the exploitation of natural resources;

• EU provide financial support in the form of the development and economic cooperation

Between 2000 and 2010 the realization of EU direct investment to Indonesia reached U.S. $ 11.8 billion invested in 1434 projects.

England, Holland, Germany and France is the EU member states with a value of investments and the largest investment project in Indonesia.

Direct Investment Flows to Indonesia by CountryYear 2004 - 2010

A few things become a problem in criticizing the international agreement :

• The use a widen definition of investment.

• Failed to distinguish between the obligations of governments and investors

• Resolution of disputes between investors and the State.

• The lack of equivalent responsibility among investors concerning public interests, the rights of workers and the environment.

• The potential impact of investment liberalization on the need for national regulations in the future and financial regulations

Facilities and incentives given to investment in CEPA  Pre-establishment / facilitation :

where restrictions on foreign ownership: so that all the limits requirements of equity and joint venture investment is seen as an barrier in doing business

Local Content Requirements

Global companies are often have a global product strategy that was created before entering a specific market. If the local content requirements specified by the state are too tight that companies need to modify the production or supply chain, this is considered as a disincentive to invest in those markets

Tax climate From the perspective of Vision Group,

Indonesia adn EU Investors are profiting from the agreement in a transparent and predictable to all EU Countries. Indonesia has ratified the Avoidance of Double Taxation Agreements with 19 of the 27 EU Member States

Investment Protection Post-establishment Legal protection for phase of investment post-

establishment. elements of this agreement includes a legal guarantee for: Non-discrimination agreement,

Nationalization / Expropriation , Compensation for the losses, Subrogation, Transfer and settlement of disputes through international arbitration

So that all the requirements limits of equity and joint venture investment is seen as an obstacle to doing business

Framework Policy of Indonesia – EU Trade Marketacces All technical regulations for an acces

without filter (naked acces) at the border included Technical Barriers Trade/TBT, Sanitary and Phytosanitary/SPS, and Non Tariff Measures/NTM)

Products of Services from EU to IndonesiaFinancial

Logistic

Infrastructure

Distribution

Cleanswatersupply

Manufacture products from EU to Indonesia Householdsfurniture Chemicalproduct Renewable energy Medicalaquipment Agrotechnology

Potentialimpact of FTA EU - Indonesia Potentialloss of governmentrevenue from

importtax Tariffreduction: Indonesia will be in the future

more and more depend on export raw material to EU (coffee, rubber, cruid palm oil, tee, etc)

Indonesia will be depend on import of foodstuff from EU (cereal, flour, milk, sugar)

• Is the relationship between Indonesia and the European Union with a background histories between European countries with colonies can develop into an equal relationship?

• Is the investment agreement will be agreed upon both parties can benefit the state and people of Indonesia? or just provide benefits for the EU?

• How does the practice of investment companies from the EU and resource conflicts with the people of Indonesia?

• How to dispute settlement mechanism the government of Indonesia and

corporations of EU if at any time of the conflict?

Questions

Easier to climb Himalaya than to coordinate the Businesspoeple

Where are Businesspeople and Government Representatives...?

European Indonesian Business Dialog 2010

Export of Hazardous and Toxic Materials (Bahan Berbahaya dan Beracun, B3) from England and Netherland to Indonesia

EUROPEAN UNION INDONESIA

DIFFERENCES IN STRENGTH

Thank You