He made the statement while accompanying Coordinating Minister for Economic Affairs, Airlangga Hartarto, to a bilateral meeting with the executive vice president (EVP) of the European Commission and European Commissioner for Trade, Valdis Dombrovskis.
"In accordance with Airlangga’s statement, Indonesia observes the steps of the European Union regarding the implementation of the Green Deal Strategy and the Carbon Border Adjustment Mechanism (CBAM) which can have an impact on aspects of trade between Indonesia and member states of European Union, including the implementation steps," the Minister of Industry said in Bali, Thursday (22/9).
The bilateral meeting was part of the agenda of the G20 Indonesia Trade, Investment, and Industry Ministerial Meeting (TIIMM).
Kartasasmita emphasized that his ministry is seeking to accelerate efforts to build an economy based on green industry through the efficient use of natural resources, the application of a circular economy, and the use of new and renewable energy such as biofuels, biomass, and refuse derived fuel (RDF).
"Achieving sustainable development cannot be done alone, but must be done together, and we can all be a part of that transformation," he remarked.
In addition, the Ministry of Industry is seeking to accelerate the industrialization of energy-efficient and environmentally friendly motorized vehicles or battery-based electric motorized vehicles (KBLBB).
"We are also developing carbon sequestration technology, as well as developing clean energy-based industries, including the construction of the largest green industrial area in the world by utilizing hydroelectric power plants (PLTA)," he said.
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He then expressed the hope that both parties will accelerate the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), reduce non-tariff trade barriers, and increase cooperation and investment between Indonesia and the European Union.
“The IEU-CEPA has entered the 11th round of negotiations and continues to show progress. The Ministry of Industry is actively involved in the Working Group on Trade and Working Group on Rules of Origin," he said.
Several important issues discussed and highlighted in the 11th round of negotiations have included tariff liberalization, export duties, re-manufactured goods and repairs, technical barriers (TBT), and government procurement.
The EU has also expressed interest in cooperation related to halal certification in Indonesia. The Ministry of Industry and the Center for Halal Industry Empowerment are ready to support this opportunity and create stronger and more beneficial cooperation together.
"In terms of increasing the value of trade between Indonesia and the European Union, we continue to encourage increased market access for the Indonesian industrial sector and the identification of superior products," the Minister of Industry said.
Indonesia's total trade with the European Union in 2021 stood at US$34.7 billion, an increase of 22 percent from US$28.5 billion in 2020.
Dombrovskis said that the European Union is very impressed and appreciates the efforts and steps taken by the Indonesian government for promoting ease of doing business and building an investment climate that supports foreign direct investment (FDI).
"The European Union hopes that various technical obstacles in the field can be resolved soon," he added.
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Translator: Sella P, Azis Kurmala
Editor: Suharto
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