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EEC and Government of Indonesia signed Memorandum of Cooperation

EEC and Government of Indonesia signed Memorandum of Cooperation


The solemn ceremony of signing the Memorandum of Cooperation between the Eurasian Economic Commission (EEC) and the Republic of Indonesia was held on October 17 in Tangerang (Indonesia) within the trade exhibition Trade Expo Indonesia. The document was signed by Sergey Glazyev, Member of the Board – EEC Minister in charge of Integration and Macroeconomics, and Enggartiasto Lukita, Minister of Trade of the Republic of Indonesia.

“Indonesia is one of the key economies of the ASEAN and the entire Asia-Pacific Region and it is important that the EEC establishes a direct dialogue with the government of this country. The new format of cooperation will contribute to building an effective infrastructure for developing trade and economic cooperation with this country, including through the use of the most modern technologies and opportunities of the digital economy,” Sergey Glazyev stated during negotiations with the Minister of Trade of Indonesia.

The Memorandum reflects the common desire of all Eurasian Economic Union Member States to develop cooperation with Indonesia, and we expect that all countries will actively join this within the joint working group,” the EEC Minister noted.

For his part, the Minister of Trade of the Republic of Indonesia stressed that formalizing cooperation with the EEC was a “historic step for economic relations with the EAEU entire region”, which would give impetus to increase in mutual trade and investment. The Minister supported the idea of holding a business forum “EAEU-Indonesia” in the future and connecting the Indonesian business circles to the intensification of multifaceted cooperation with the Eurasian Economic Union. In particular, the expediency of a direct dialogue between the Chambers of Commerce and Industry of the Member States and Indonesia was emphasized.

“The creation of comfortable conditions for realizing economic potential between business representatives of our countries will allow us to implement specific projects, including on manufacturing high-tech products with high added value,” Sergey Glazyev expressed confidence.

At the same time, the EEC Minister noted that the working group established on the basis of the Memorandum would focus on the EEC supranational competence, such as trade facilitation, customs and technical regulation and development of financial markets. This platform is also expected to be used in exchanging experience and best practices in the industrial and agricultural sectors.

The parties noted available reserves for bilateral cooperation in trade and investment. Notwithstanding that the total value of the EAEU trade turnover with Indonesia increased by 11% and amounted to 1.7 bln US dollars in January-July 2019 compared to the same period of 2018 (including exports increased by 20.1% up to 607 mln US dollars; imports increased by 6.4% up to 1.1 bln US dollars), there are significant opportunities to further increase of trade in goods and services in traditional and new spheres.

The parties agreed that the first meeting of the joint working group of the EEC and the Government of the Republic of Indonesia would be held in the first quarter of 2020 in Moscow.

During his visit to Indonesia, Sergey Glazyev also conducted negotiations with Aladdin Rillo, Deputy Secretary General of the Association of Southeast Asian Nations (ASEAN). Key issues concerned implementing the Memorandum of Understanding dated 2018 and deepening the dialogue. The Minister noted upward trends in cooperating with the ASEAN, including through the launch of cooperation program between the EEC and the Association Secretariat for 2019-2020.

A seminar on the exchange of integration experience, which will be held on December 9-10 this year in Moscow, will be one of the first steps towards deepening cooperation in the multilateral format.

For his part, the Deputy Secretary-General of the ASEAN also highly appreciated the contact established with the EEC, noting that the parties had made a good start, having promptly developed and agreed on a joint action plan.

“Direct dialogue with the ASEAN is important to identify promising areas of cooperation between two regions, especially within the context of high intensity of contacts between the EAEU Member States and the Association,” the EEC Minister stated.

Sergey Glazyev proposed to develop the practice of the ASEAN participation in events on economic integration on the sidelines of key forums in the Union countries, including the St. Petersburg International Economic Forum (SPIEF), where the EAEU-ASEAN business dialogue has been held for two years in a row. The Minister invited the ASEAN Secretariat to join the first International Eurasian Economic Forum, which will be held in 2020 in Minsk in relation to one of the Supreme Eurasian Economic Council’s meetings.

In the course of negotiations with the Minister of Trade of the Republic of Indonesia and Deputy Secretary General of the ASEAN, Sergey Glazyev noted the importance of connecting the Association States to forming the Large Eurasian partnership.

For reference

The EEC cooperates with the governments of more than a dozen countries in a memorandum format: Chile, Peru, Mongolia, Singapore, Cambodia, Morocco, Jordan, the Faroe Islands, Cuba, Thailand, Bangladesh and Moldova as well as cooperates with the Government of Greece - in a declaration format.

The EEC consistently develops a dialogue with regional integration associations, including ASEAN, MERCOSUR and the Andean Community as well as a number of relevant international agencies.