The IEU CEPA will only encourage the expansion of the extractive economy in Indonesia. This will be a serious problem in realizing a just transition agenda for the Indonesian people.
Jakarta (ANTARA) - The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) has the potential to have a multidimensional impact on the Indonesian people, according to the Indonesian Civil Society Coalition for Economic Justice (MKE).

Therefore, the MKE has urged the Indonesian government to provide guarantees of legal certainty for the fulfillment of democratic rights, protection of human rights and the right to social justice, and environmental sustainability before signing the agreement.

"This Indonesia's EU CEPA negotiations are not inclusive and do not open up space for transparency," said executive director of Indonesia for Global Justice (IGJ), Rahmat Maulana Sidik, at a press conference here on Wednesday.

The MKE made the statement in response to the 13th round of IEU CEPA negotiations, which are being held in Bali from February 6–10, 2023.

Rahmat said that information regarding the development of issues discussed substantially in the IEU CEPA negotiations has been limited.

Hence, he said he believes that the negotiations could contribute to influencing the democratic process in Indonesia.

Meanwhile, Transnational Institute (PTI) researcher Rachmi Hertanti said that the European Union's efforts to gain access to minerals in Indonesia through chapters related to energy and raw materials will deepen the exploitation of extractive resources in Indonesia.

The agreement is also predicted to worsen environmental damage and increase the potential for the violation of human rights of affected communities in industrial areas.

Meanwhile, the arrangement of the Investor-State Dispute Settlement (ISDS) mechanism in the IEU CEPA investment chapter is seen to reopen Indonesia's potential to be sued by multinational corporations at international arbitration institutions, such as the International Centre for Settlement of Investment Disputes (ICSID).

"The IEU CEPA will only encourage the expansion of the extractive economy in Indonesia. This will be a serious problem in realizing a just transition agenda for the Indonesian people," she said.

Meanwhile, researcher Anang F. Sidik from Kaoem Telapak said the agreement would indirectly make it difficult to push for changes in environmental management policies, especially palm oil plantation governance, in the absence of a strong commitment from both parties.

“The trade and sustainable development (TSD) chapter, which is being proposed to make the IEU CEPA a ‘green FTA,’ also does not reflect the seriousness of the commitment of both parties to protecting the environment and protecting human rights," he said.


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Reporter: Katriana
Editor: Tia Mutiasari
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