Mon, 11 Apr 2005

EU wants to sign a special agreement with RI to boost ties

Veeramalla Anjaiah, The Jakarta Post, Jakarta

In an effort to assume greater international responsibility commensurate with its size, economic clout and standing in the world, the European Union (EU) is looking for partners to accomplish the task.

With a population of 220 million, newly acquired democratic credentials and abundant natural resources, Indonesia certainly fits the criteria to become an important partner of the EU in this part of the world.

That is why, the EU is currently attempting to revitalize its existing ties with Indonesia and to forge a new partnership through a special comprehensive agreement, the new head of the delegation of the European Commission (EC) to Indonesia said in Jakarta.

The EC is the executive arm of the 25-member EU, the world's richest regional grouping which has a combined gross domestic product (GDP) of 10 trillion euros (around US$13 trillion). .

"There is a strong will in Europe to develop links between Europe and Indonesia. We want to strengthen our existing relationship. This is particularly because Indonesia is an important country, which is not only big in size but also a democratic country. We want to have a special agreement like the one we have with the other countries in the world," Ambassador Jean Breteche, who submitted his credentials to President Susilo Bambang Yudhoyono on March 16, 2005, told The Jakarta Post in an interview recently at his office.

Last month, both Indonesia and the EU agreed that the negotiations regarding the special agreement must be completed before June this year.

While explaining the details of the planned agreement, Breteche said it would be like the EU's agreement with Mediterranean countries under the "Barcelona Process".

"It will be an open agreement. It covers everything. There will be a provision for political dialog, clauses on good governance, economic cooperation, economic exchange and human rights and so on. It will be similar to our agreement with the Mediterranean states," Breteche, a French national, said.

The Barcelona Process was launched in November 1995 by the EU- Mediterranean foreign ministers under the name Euro-Mediterranean Partnership. The initiative, which is unique and ambitious, represents a broad framework of political, economic and social cultural relations between the 25 EU member states and 10 Mediterranean countries -- Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey.

Under the Barcelona Process -- which has three main objectives: political and security dialog, establishment of a free-trade area and the rapprochement between peoples through a social, cultural and human partnership -- the EU signs an association agreement with individual Mediterranean countries.

"We will also have a similar agreement -- including an association agreement with Indonesia, -- which will ultimately lead to the establishment of a free-trade area. It is a very open agreement. We want to negotiate this agreement with Indonesia before June," Breteche, who is also a non-resident ambassador to Brunei Darussalam and East Timor said.

Moreover, both the EU and Indonesia, according to Breteche, want to upgrade the existing relations.

"We have very good financial and political relations with Indonesia. We don't have any problems with Indonesia. But we want to strengthen them. We came here to help you. We are partners not donors or lenders," Breteche said.

EU is Indonesia's second largest trading partner after Japan. Bilateral trade was about 14 billion euros (around US$18 billion) in 2003.

"On an average, Indonesia is exporting around $10 billion (in goods) to us and we are exporting around $4 billion to Indonesia. It means you have a surplus of $6 billion," Breteche said.

For Indonesia, the EU is one of the major sources of foreign direct investment (FDI) with countries like Britain, Germany, France, Poland, Italy and the Netherlands accounting for a larger proportion.

"We want to invest more in Indonesia. The reason is the EU is very much impressed by Susilo's program on good governance, rule of law, the fight against corruption. We want to help and support him to implement his program," Breteche said.

"Ever since the election of Susilo, more FDI has come into the country.

"It means more jobs. At the end people will benefit," Breteche said.

The EU is also Indonesia's biggest donor. It offered 1.5 billion euros (US$2 billion) in grants and loans to Indonesia to deal with the tsunami tragedy.

"We want to participate actively in the reconstruction of Aceh. We will work with the Indonesian government in this matter," he said, while adding that the tsunami funds must be spent transparently and there should be accountability in the spending.