Geneva – Switzerland, 12 September 2024 – In the midst of the WTO Public Forum on 10-13 September 2024 in Geneva, Switzerland, Indonesia for Global Justice (IGJ) held a meeting with PTRI Geneva. Also present at the meeting were: Rahmat Maulana Sidik, Executive Director of Indonesia for Global Justice (IGJ), Salsabila, Puanifesto where both organizations are members of the Indonesia Coalition for Economic Justice.
From the side of the Indonesian Permanent Mission representatives were also present, namely: Mrs. Novi Dwi Ratnasari, Mrs. Anisa Farida, Mr. Yudanto Wibowo and Mr. Ramiaji Kusumawardhana.
Concerns Regarding Indonesia’s Involvement in the Joint Statement Initiative Investment Facilitation for Development (JSI IFD)
In the meeting, Rahmat Maulana Sidik expressed Indonesia’s concerns about participating in the JSI Investment Facilitation for Development (IFD). Because many academic studies show that IFD in the WTO does not provide certainty for Indonesia to be glanced at by investors. But it only adds to concerns about potential disputes from foreign investors against Indonesia in the future. In addition, this IFD regulation will later require the Central Government to Regional Governments to comply with it. This is a challenge in its own implementation domestically, because it is not certain that the Regional Government is well exposed to information related to this even in its implementation.
Actually, if the reason the Indonesian Government joined the JSI IFD was only to adjust its investment standards to international standards, then it needs to be re-examined. Because that is not what makes investors enter Indonesia. Some of the problems that must be overcome include: corruption, complicated bureaucracy, overlapping regulations, no legal certainty and so on. Therefore, resolving the list of domestic problems above is much more important than making commitments in the JSI IFD which have the potential to cause new problems in the future.
In addition, there is no need to be burdened with when the Indonesian Government withdraws/leaves the JSI IFD it will disrupt investment diplomacy with other countries. For example, Turkey has joined and then withdrawn from participating in the JSI IFD.
Salsabila also added that in this IFD there is no market access commitment, so there is no need to join or withdraw from the IFD and it does not affect to Indonesia.
As an update in the discussion of the JSI IFD, namely the position of South Africa and India oppose the discussion of the JSI IFD in the WTO Multilateral Forum. Because there is no mandate to be discussed at the previous Ministerial Conference. But South Africa can still be invited to dialogue in this discussion. Meanwhile, India does not want any dialogue and continues to oppose the JSI IFD and even considers this an “Illegal” discussion, because there was no previous mandate.
Obligation to Protect and Maintain Subsidies for Small and Traditional Fisherfolks
The next point in the meeting was conveyed with concern on the issue of the WTO fisheries subsidy agreement (Fisheries Subsidies Agreement on WTO). Rahmat Maulana Sidik emphasized that it is important to protect small-scale fishermen in developing countries, especially Indonesia. Because the draft text still provides room for large vessels to maintain their subsidies as long as they can prove that their fish processing process is sustainable. Meanwhile, for small-scale fishermen, it is not clearly defined in the draft text, even in the provisions of S&DT (Special and Differential Treatment) there are special requirements that must be met to obtain subsidies for small-scale fishermen in developing countries.
If fisheries subsidies are abolished and no longer given to fishermen, then it is contrary to the National Law, namely Law Number 7 of 2016 concerning the Protection and Empowerment of Fishermen, Fish Farmers, and Salt Farmers which provides a guarantee of subsidies for small and traditional fishermen. Therefore, it is necessary to consider carefully the potential for restrictions on the provision of subsidies for small fishermen by the WTO and contradict the National Law.
Developed Countries Reject the Revocation of the JSI E-Commerce Moratorium
In the negotiations on the JSI E-Commerce issue, the E-Commerce moratorium was extended and of course this was opposed by developing countries including Indonesia. In fact, there is already a text that has been concluded in the JSI E-Commerce, and until now Indonesia has not signed it. Of course, the extension of this moratorium is detrimental to developing countries because they cannot get added economic value from the activities of e-commerce companies entering developing countries, including Indonesia. Because we advise Indonesia to continue to oppose the extension of the JSI E-Commerce moratorium.
I-EU CEPA and the Controversy of Finalizing Negotiations Before the Inauguration of the New President in October 2024
In addition to discussing WTO issues, this meeting also discussed the negotiations on the I-EU CEPA trade agreement. Where these negotiations continue to be pushed for accelerated finalization before October 2024. Even in the information received, the acceleration of finalization before October is the ambition of the Indonesian Government. However, the finalization ambition is not only for the I-EU CEPA, but for all FTAs that currently involve Indonesia. There are 18 FTAs that are ongoing and 10 FTAs are in the exploration process.
It is actually unclear what the finalization ambition is being pushed by the Indonesian Government in these negotiations. Until the discussion continues every week on the I-EU CEPA. But what is certain is that this trade agreement is closed and exclusive. So that there is minimal information and even public involvement in the process. In addition, there is no assessment whatsoever regarding the community that is potentially affected by this trade agreement, such as Human Rights Impact Assessments (HRIAs), Environment Impact Assessments (EIAs) and other social impact aspects. In fact, if we examine further the draft chapter proposed by the European Union, this trade agreement has the potential to benefit the European Union more than Indonesia. For example, in the Energy and Raw Materials Chapter which is full of the interests of the European Union in taking raw materials from Indonesia, one of which is Nickel.
In several trade agreements, Indonesia’s interests include palm oil as a superior export and other mining raw materials, such as coal and nickel. The correct term is only utilizing goods from God.
Now there are 12 chapters that have reached conclusions, including the TSD chapter, IPR, and 12 remaining chapters that are still being negotiated including the rules of origin (ROO).
Contact:
Rahmat Maulana Sidik, Executive Director, Indonesia for Global Justice (IGJ) – Rahmat.maulana@igj.or.id or maulana.official55@gmail.com.
Office Address:
Indonesia for Global Justice (IGJ)
Rengas Besar Street No. 35 C, Jati Padang, Pasar Minggu, South Jakarta, Special Region of Jakarta, Indonesia. Postal Code 12540.
Website: www.igj.or.id.