The ARISE+ Indonesia programme officially concluded in July 2024, marked by the completion of all ARISE+ Indonesia Technical Assistance II activities. It leaves behind a transformative legacy characterised by enhanced capacities, a range of newly developed tools, and comprehensive studies and assessments to support policy formulation. These initiatives aim to bolster Indonesia's trade competitiveness and investment landscape. Initiated in August 2021, the ARISE+ Indonesia Technical Assistance II complemented the implementation of Technical Assistance I, which commenced in 2019 and concluded in 2023. Funded by the European Union, the ARISE+ Indonesia programme has played a pivotal role in supporting the Government of Indonesia to strengthen its capacities and competitiveness in anticipation of the Indonesia-EU Comprehensive Economic Partnership Agreement, which is currently under negotiation.
Enhancements in Trade and Investment
A pivotal achievement of the ARISE+ Indonesia programme has been the development of the Attraction Plan for EU Investment in Indonesia, launched on 25 April 2024. This plan is designed to entice high-impact European investments, focusing on strategic sectors such as renewable energy, ICT, and smart cities, thereby aligning Indonesia’s strengths with EU priorities.
The Plan is supported by the re-establishment of an EU Desk at the Ministry of Investment/BKPM, marked by the co-signing of the Terms of Reference between the Deputy Minister for Investment Promotion, Nurul Ichwan, and the EU Ambassador, Denis Chaibi.
Supporting National Development
The ARISE+ Indonesia programme has collaborated with the Ministry of National Development Planning (Bappenas) to develop strategic studies to support the development of the medium term development plan. These studies focus on investment, international economic cooperation, and export acceleration.
Another significant, high-profile piece of work undertaken under this component was supporting Indonesia’s Blue Economy Roadmap, which charts a course towards building a diverse and sustainable maritime economy for Indonesia, prioritising the health and resilience of ocean ecosystems and ensuring benefits for present and future generations. The roadmap’s work, which included developing an Indonesian Blue Economy Index (IBEI), was showcased at key high-profile fora, including G20 and ASEAN meetings chaired by Indonesia in 2022 and 2023 respectively.
Enhancing Trade Negotiations
The programme has also empowered the Directorate General for International Trade Negotiations at the Ministry of Trade with specialised training and new tools to enhance trade in services negotiations and address non-tariff barriers. These included developing a monitoring system on the performance of Trade in Services and conceptualising a coordination mechanism among relevant stakeholders. In relation to non-tariffs measures, the TAT worked in partnership with the MoT to develop a framework to address foreign NTBs faced by Indonesian companies abroad, and a framework on notifying import licensing requirements at the WTO.
Strengthening Trade Defense Mechanism
The trade investigation capabilities of the Directorate of Trade Defense (DPP), the Indonesian Anti-Dumping Committee (KADI), and the Indonesian Safeguards Committee (KPPI) have also been significantly strengthened by ARISE+ Indonesia's training and development of analytical tools.
These include setting up Excel based tools to determine the margin of dumping and the margin of injury, as well as strengthening a Case Management System (CMS) developed in the earlier stages of ARISE Plus Indonesia.
Improving Export Quality Infrastructure
ARISE+ Indonesia has supported various stakeholders in improving Indonesia's export quality infrastructure through the development of several pivotal tools and training programmes.
Among the achievements, the Trade Barriers to Trade (TBTs) website, managed by the National Standardisation Agency (BSN), has undergone a major revamp to provide better access and clarity on TBT issues. A new communication tool for market surveillance of non-food products, INRAPEX, was developed, significantly improving the capacity for risk assessment and data exchange on product safety with other technical ministries. The Food National Contact Point (NCP) and Competence Contact Points have also improved their skills to handle repeated EU RASFF notifications effectively.
The improvements extend to testing and certification laboratories, along with NMI level laboratories, which have seen enhancements in metrology. Calibration laboratories now boast increased capacities, contributing to more accurate and reliable measurements.
Food safety and quality assurance in critical sectors such as spices and fish products have been elevated, with increased laboratory capacities to test for mycotoxins in food products.
Moreover, operators involved in the Muntok White Pepper and Koerintji Cinnamon value chains have upgraded their practices to ensure safe production, incorporating GAP, enhanced GMP documentation, and the implementation of HACCP. A noteworthy public-private partnership for Patin aquaculture has also been established, demonstrating a strong collaboration model between Indonesian Catfish industries.
Promoting Geographical Indications
Lastly, ARISE+ has supported the Directorate General of Intellectual Property in strengthening the capacity of community associations for geographical indications in the cocoa value chain, enhancing both local and global recognition.
Foundations for Tomorrow
The ARISE+ Indonesia programme has marked its legacy on Indonesia's trade and investment landscape, creating robust frameworks and opportunities for continued growth and integration into the global economy. Its comprehensive approach to enhancing trade capabilities, investment attraction, and policy formulation has laid the groundwork to propel Indonesia towards a more integrated and robust economic future.
