Indonesia - EFTA Deal Hampered by Palm Oil Trade

TEMPO.CO, Jakarta - Trade Minister Enggartiasto Lukita revealed that the realization of Indonesia’s bilateral agreement with four members of the European Free Trade Association (EFTA) was hampered by discussions related to Indonesia’s palm oil products.

“Our negotiation process is hampered mainly because they held back our palm oil, which is why we are holding Norway’s salmons,” said Enggartiasto on Sunday, December 16.

The four EFTA countries comprise of Swiss, Liechtenstein, Island, and Norway. Sunday’s meeting saw Indonesia ratifying a deal known as the Indonesia-EFTA Comprehensive Economic Partnership Agreement (lE-CEPA).

Trade Minister Enggartiasto Lukita. TEMPO/Ilham Fikri

After the struggle to agree on palm oil, Enggartiasto said that he will try to have the product expand to a larger market within those four countries. The hard negotiations were also driven by the fact that all countries involved want to largely benefit from the deal.

The IE-CEPA lasted almost eight years before it was substantially deemed completed by the team of mediators in the meeting held in Bali, on October 29-November 1. It was then finally declared by State Ministers on November 23 at Geneva, Swiss.

According to the Trade Minister Enggartiasto, the form of trade within IE-CEPA includes trade on goods, services, investment, intellectual rights, sustainable development, trade facilities, trade securities, business competition, and partnership on capacity development.

MUHAMMAD HENDARTYO