ARISE+ Indonesia

Start & End Date: 2019-2023

Country/Countries: Indonesia

Multilateral Institution(s) Involved: European Union

Indonesia, the world’s fourth most-populous country, has great potential for growth as a trading partner. Although the biggest member of ASEAN by far, Indonesia represented only 11.2% of the EU's overall trade with the 10-country bloc, according to 2017 ASEAN statistics. Similarly, Indonesia received only 1.6% of all EU FDI going into Asia, and only 6% of all EU investments flowing into ASEAN. Indonesia thus lags behind Singapore, Vietnam, Malaysia and Thailand.

ARISE+ Indonesia is implemented through two complementary technical assistance projects. The first technical assistance, with a budget of about EUR 9 million, was launched in 2019 for an implementation period of four years. The implementation of the second technical assistance started on 2 August 2021 for a period on two and a half years and a budget of about EUR 4.7 million. ARISE+ Indonesia responds to the priorities of the Government of Indonesia according to the agenda set with the EU in their cooperation framework. The Programme supports government institutions in implementing and reviewing existing trade and investment related policies more effectively and in elaborating new policies aimed at increasing business opportunities for Indonesian enterprises. In particular it provides technical assistance to the relevant institutions in sharpening their expertise to negotiate the Comprehensive Economic Partnership (CEPA) with the EU. Support is also given to small and medium-sized enterprises to facilitate their more active participation in international trade and to promote the economic empowerment of women. Key focus areas of the ARISE Plus Indonesia programme are: (1) Trade and Investment Policy, (2) Trade Facilitation, (3) Export Quality Infrastructure, and (4) Geographical Indications (GI) and SME support.

Boosts trade performance and competitiveness. Some of the mutual benefits of the enhanced cooperation have materialised though the expansion of trade and investments. Trade in goods between the two partners (EU and Indonesia) rose about EUR 15 billion in 2009 to EUR 24 billion in 2019 , an average increase of 4.8% per annum. Direct investment flows from the EU to Indonesia grew at a very rapid pace during the past few years.