Over Seeing The Relation of Eurepean Union –Indonesia

Potential Impact of CEPA to Indonesia

Disampaikan pada Asia Europe Peoples Forum Subregional Conference di Jakarta, 28-29 Juni 2012

M.Riza DamanikIOC AEPF-Indonesia/ KIARA

Three Type of Global Crises Faced by Indonesia

Climate Crises, harvest failure, high risk for fisheries, flooding in coastal area

Food and energy crises, 1 billion of world population and 67,64 million of Indonesia population.

Financial Crisis, financial crises causing an

international capital expansion to the third world countries (investment portffolio or Foreign Direct Investment). Development of new investment instrument for capital accumulation.

“… the framework of Indonesian cooperation with other countries

(including European Union) has to put in place to solve the crises notthe other way around…”

CEPA

• Trade

• Investment

• Finance

• Service, and

• IPR

Recovery of European Crises;

Increasing economic growth up to 7% through Foreign Direct Investment

Status of Natural Recources Management

“… around 80% of Indonesian farmers is landless; around 93%

fishers and its crew are traditionals …”

Potential Impact of CEPA

Expantion of Food Crisis- Dependence of farmers to fertilizer, feed stock to other agriculture products is increasing - Access of farmers to water is depleting, parallel to the increasing of water allocation for non farm activities.- Indonesian export is still very much depend on raw materials, not giving added value and low work force - Import of processing food to Indonesia is increasing- Allocation of state budget for food import is increasing

Deindustrialization- Many of local industry have to closed because of raw material scarcity.- Disappearing of working field. - etc

Environment degradation- The pressure on environment is increasing, especially through extractive industry- Increasing amount of carbon emission- Expansion of agrarian conflicts- Poverty and Unemployment is increasing

Capital control not by state- Financial sector (banking) controlled by EU and other foreign countries.- Financial system does not serve the local small and medium industry - etc

Challenges of Indonesia – EU Relation

• Climate Justice (ecological debt repayment and emission cut by industrial country; protection for vulnarable group) vs EU potition to force carbon market and/or new market mechanism for emission reduction through REDD+

• Fod and Energy Sovereignty (people’s access to land, water and energy) vs EU interest for Indonesia food and energy resources.

• Economic sovereignty (protecting financial sector from speculative practices; sovereignty defines foreign involvement in financial sector; including to refuse against development agenda from foreign debt pressure) vs EU is the second larger investors in Indonesia; over than 700 EU companies operating in Indonesia from financial to food sector.

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