INTERIM REPORT on the draft Council decision on the conclusion of the Framework Agreement on Comprehensive Partnership and cooperation between the European Community and its Member States, of the one part, and the Republic of Indonesia, of the other part, with the exception of matters related to readmission

on the draft Council decision on the conclusion of the Framework Agreement on Comprehensive Partnership and cooperation between the European Community and its Member States, of the one part, and the Republic of Indonesia, of the other part, with the exception of matters related to readmission

(11250/2013 – C7‑0351/2013 – 2013/0120A(NLE))

The European Parliament,

–   having regard to the draft Council decision (11250/2013),

–   having regard to the draft Framework Agreement on Comprehensive Partnership and cooperation between the European Community and its Member States, of the one part, and the Republic of Indonesia, of the other part (14032/2009),

–   having regard to the Cooperation Agreement of 7 March 1980 between the European Economic Community and Indonesia, Malaysia, the Philippines, Singapore and Thailand – member countries of the Association of South-East Asian Nations[1] (ASEAN) and subsequent accession protocols,

–   having regard to its resolution of 5 September 2002 on the Commission Communication on Europe and Asia: A Strategic Framework for Enhanced Partnerships[2],

–   having regard to its resolution of 5 June 2003 on the situation in Indonesia, particularly in the Aceh province[3],

–   having regard to its resolution of 20 November 2003 on Aceh[4],

–   having regard to its resolution of 13 January 2005 on the recent tsunami disaster in the Indian Ocean[5],

–   having regard to the negotiations on comprehensive partnership and cooperation between the European Community and its Member States, of the one part, and the Republic of Indonesia, of the other part, authorised by the Council on 25 November 2004, concluded in June 2007 and signed on 9 November 2009,

–   having regard to the Agreement between the European Union and the Government of the Republic of Indonesia on certain aspects of air services, signed on 29 June 2011[6],

–   having regard to its resolution of 7 July 2011 on Indonesia, including attacks on minorities[7],

–   having regard to its resolution of 2 February 2012 on the EU foreign policy towards the BRICS and other emerging powers: objectives and strategies[8],

–   having regard to Council Decision 2012/308/CFSP of 26 April 2012 on the accession of the European Union to the Treaty of Amity and Cooperation in Southeast Asia[9],

–   having regard to the European Parliament Election Observation Missions' reports on elections in Indonesia of 5 April 2004 and 20 September 2004, in East Timor of 30 August 1999, 30 August 2001, 9 April 2007, 30 June 2007 and 7 July 2012, and in Aceh province of 11 December 2006,

–   having regard to the Jakarta Statement on Principles for Anti-Corruption Agencies of 27 November 2012,

–   having regard to Article 21 of the Treaty on European Union,

–   having regard Articles 91, 100, 191(4), 207 and 209, in conjunction with Article 218(6)(a) of the Treaty on the Functioning of the European Union,

–   having regard to Rule 81(3) of its Rules of Procedure,

–   having regard to the interim report of the Committee on Foreign Affairs (A7-0093/2014),

A. whereas relations between the European Union and the Republic of Indonesia (hereinafter referred to as "Indonesia") are to be governed by the abovementioned Framework Agreement on Comprehensive Partnership and Cooperation (hereinafter referred to as "the PCA");

B.  whereas the PCA is the first of its kind between the European Union and Indonesia and aims at strengthening political, economic and sectorial cooperation of mutual interest and at further enhancing bilateral and regional cooperation in responding to global challenges;

C.  whereas the PCA contains, as essential elements, confirmation of the values expressed in the Charter of the United Nations, the United Nations Universal Declaration on Human Rights and other international treaties applicable to both parties as well as their commitment to the principles of democracy, good governance and the rule of law, and provisions on establishing or enhancing cooperation in areas such as human rights, trade and investment, energy, tourism, transport and infrastructure, marine conservation and fisheries, industrial policy and small and medium-sized enterprises (SMEs), data protection and intellectual property rights, as well as counter-proliferation of weapons of mass destruction (WMD), the fight against organised crime, corruption, money laundering, terrorism and terrorist financing;

D. whereas Indonesia is the world’s fourth most populous nation, the third largest democracy, the largest Muslim majority country with millions of followers of other beliefs, and a heterogeneous society comprising over 240 million citizens of various ethnicities, languages and cultures, of, 40% of whom are below 25 years of age, strategically located in an archipelago of more than 17 000 islands, spanning 5 400 kilometres from east to west in the Indian and Pacific Oceans;

1.  Asks the Council to take into account the following recommendations:

(a)    Welcomes the PCA as the first of its kind between the EU and ASEAN countries; considers it to be a testimony to the rapidly growing importance of EU‑Indonesian ties and expects it to open a new era in bilateral relations, based on shared principles such as democracy, the rule of law and human rights, equality, mutual respect and mutual benefit;

(b)    Highlights Indonesia's 15-year process of democratic, political, social and economic transformation, after 33 years of authoritarian military rule; notes that Indonesia is urbanising rapidly, has a fast-rising middle class (of over 70 million), ample natural resources, the largest economy in Southeast Asia (GDP growing by more than 6% in the last two years), with half of the world's trade passing its northern maritime border, and an increasing diplomatic presence in regional and global fora, such as the UN, the WTO, the IOC and the G20, as well as the ASEAN, of which Indonesia is both a founder and its largest member, and recognises the important role played by Indonesia in the broader region;

(c)    Commends the progress made by Indonesia in developing democratic governance and the commitment to democracy displayed by its pluralistic society, shown in free and fair elections, media freedom, civil society activism, economic resilience and poverty reduction, in education and other Millennium Development Goals indicators, in nurturing good relations with neighbours and in advocating democracy and human rights; notes, however, that serious challenges remain to the rule of law and the protection of human rights, namely ensuring the accountability of perpetrators of human rights violations, including the military, and of persons violating minority rights, such as the rights of members of religious, ethnic, gender and LGBTI groups, and including the challenges linked to the fight against corruption; underlines that these challenges can be addressed through international cooperation, namely in the framework of the PCA;

(d)    Points out the fast-growing ties between the EU and Indonesia in trade and other economic areas, in view of the business opportunities offered by an economy that has attracted increased levels of foreign and domestic investment; suggests that better infrastructure and connectivity and an improved regulatory framework should be sought through cooperation under provisions of the PCA relating to trade and investment, taxation and customs, economic policy dialogue, the environment, industrial policy and SMEs, as well as transport, in order to unlock the full economic potential of Indonesia and promote sustainable growth, job creation and poverty reduction, both in the EU Member States and in Indonesia;

(e)    Stresses that the PCA aims to further strengthen relations between the EU and Indonesia, in addition to the existing cooperation mechanisms, and to cooperate in addressing global challenges, based on the shared principles of equality, mutual respect, mutual benefit, democracy, active civil society participation, the rule of law, good governance and human rights, by developing political and economic cooperation in matters concerning trade, investment, industrial policy and SMEs, the environment, climate change, energy, science and technology, intellectual property rights, tourism, education and culture and migration, as well as combating money laundering and terrorist financing, drug trafficking, corruption, organised crime and human trafficking;

(f)     Believes that the relationship between Indonesia and the EU ought to be recognised as strategic and that regular summits should be held to review bilateral and global developments; recommends that high-level visits to Indonesia take place regularly, namely by the President of the European Commission, the High Representative/Vice-President and Members of the European Parliament, and that the issue of visas and access by international civil society organisations should be mutually facilitated in such a way as to intensify people-to-people contacts and civil society exchanges; welcomes in this regard the establishment of the Joint Committee, under Article 41 of the PCA, which is required to meet at least every two years in Indonesia and in Brussels alternately;

(g)    Urges the EU and Indonesia to make full use of the PCA in order to achieve long-term geostrategic benefits in facing global security challenges at bilateral, regional and global multilateral fora, such as tackling climate change and the proliferation of WMD, combating terrorism, corruption, organised crime, drug trafficking, money laundering and terrorist financing, cooperating in the field of data protection and continuing the cooperation in other areas not explicitly covered by the PCA, such as disaster preparedness and response, conflict resolution, small arms and light weapons and maritime security, including piracy;

(h)    Welcomes Indonesia’s ratification of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights in 2006, as well as its recent ratifications of various United Nations human rights instruments relating to migrant workers, persons with disabilities, children in armed conflicts and the sale of children, child prostitution and child pornography; expects the institutional and legal reforms necessary to bring about compliance with those instruments;

(i)     Highly appreciates the peace agreement and economic development achieved in Aceh over the last eight years, and hopes that further progress can be made towards lifting the province and its people out of poverty;

(j)     Commends the efforts undertaken by the Indonesian authorities to combat corruption, including the work done by the Corruption Eradication Commission (KPK); is worried, however, that corruption remains a serious problem and a major impediment to development, despite Indonesia’s ratification in 2006 of the UN Convention against Corruption, and therefore urges further action under Article 35 of the PCA to share best practices in tackling corruption, including the recovery of assets hidden in EU Member States or in any other jurisdiction, and in combating economic and financial crime;

(k)    Encourages EU Member States to extend mutual legal assistance with Indonesia in the fight against corruption and to cooperate with Indonesia in denying sanctuary to entities involved in corruption and human rights violations;

(l)     Notes the importance of the Indonesian Law 34/2004 and the 2009 Ministerial Regulation 22 providing for the compulsory takeover of all military businesses and economic activities by the Government of Indonesia; stresses the fundamental impact of compliance with that Law and that Regulation for democratic accountability in the fight against corruption and the protection of human rights;

(m)   Commends Indonesia for the role played by it in steering the process of the Bali Forum for Human Rights at regional level; is concerned, however, by the inconsistency of Law 8/1985 and the new Law on Mass Organisations 17/2013 (repealing the former Law on Associations 8/1985) on civil organisations (the “Ormas Bill”), which, despite the stated purpose of ensuring tolerance and preventing violence against society groups, if not revised to conform with international human rights standards, risks imposing unnecessary and sometimes onerous administrative, legal and financial restrictions on the activities of non-governmental organisations, thereby significantly undermining the capacities of civil society to work in Indonesia and restricting freedom of association, freedom of expression, freedom of assembly and freedom of thought, conscience and religion; believes in this regard that the annual EU-Indonesia Human Rights dialogue is the appropriate platform to address such concerns;

(n)    Stresses that both national and foreign enterprises operating in Indonesia need to develop their activities in accordance with the principles of corporate social responsibility; welcomes Government Regulation No GR 47/2012 concerning Social and Environmental Responsibility of Limited Liability Companies, which is generally applicable to Indonesian companies and provides for incentives and sanctions: highlights, none the less, the need for capacity-building to implement the UN Guiding Principles on Business and Human Rights; calls on the EU to provide, within the framework of the PCA, the necessary technical assistance, and on Indonesia to develop its own national plan of implementation of the UN Guiding Principles; commends Indonesia for hosting, in November 2012, the international meeting steered by its Corruption Eradications Commission together with the United Nations Development Programme and the United Nations Office on Drugs and Crime, which discussed the ‘Principles for Anti-Corruption Agencies’;

(o)    Notes with regret that the increasingly strong focus on Islamic teachings in the public education system , to the detriment of the stress on religious, ethnic and cultural plurality and diversity enshrined in the Indonesian motto ‘Bhineka Tunggal Ika’ (Unity in Diversity), and also the widespread perception of the lack of political decisiveness on the part of the authorities in dealing with religious extremism, are seen as contributing to the rise of incidents involving sectarian violence and discrimination against people belonging to religious and ethnic minorities; remains concerned about the acts of discrimination, harassment or violence perpetrated against people belonging to ethnic minorities, women and LGBTI people, sometimes pursued under various rules and regulations relating to pornography, blasphemy or the activities of religious minorities;

(p)    Expresses concern about the violence perpetrated against religious minorities, which is reflected in attacks against Ahmadiyya followers and Shia Muslims and the closure of churches in some parts of the country, as well as discriminatory regulations and state practices against persons not belonging to one of the six recognised religions, in the context of civil registration of marriages and births or the issuance of identity cards; urges the Indonesian authorities to ensure the practical application of freedom of religion as provided for by the Constitution, and to continue to promote religious tolerance; believes in this regard that the annual EU-Indonesia Human Rights dialogue, as well as Article 39 of the PCA on the modernisation of the State and Public Administration is the appropriate platform to address such concerns;

(q)    Recalls that abolition of the death penalty is a key objective of the Union's human rights policy; calls on the Indonesian authorities to consider abolishing the death penalty, or at least declaring a moratorium on its application; believes in this regard that the annual EU-Indonesia Human Rights dialogue is the appropriate platform to address such concerns; moreover, urges the EU to engage more closely with Indonesia's civil society with a view to promoting human rights, the rule of law and the fight against corruption, as well as advocating the abolition of the death penalty;

(r)     Remains gravely concerned about torture and other human rights abuses against the civilian population in Papua and West Papua, where according to estimates over 100 000 people have been killed in the last 50 years; welcomes the recent announcement by the Papuan Governor to open Papua up to foreign journalists and NGOs for the first time in years; calls on the EU to offer assistance to the Indonesian authorities, as previously done in the case of Aceh, in developing a comprehensive approach to improving the situation in Papua; remains concerned about the clashes between the security forces and the pro-independence groups, and the disturbing reports of human rights violations attributed to the security forces, as well as the lack of progress in the areas of education, healthcare and work opportunities and the ability to exercise freedom of expression and assembly, which are essential for Papuans, as well as protection of the environment, natural resources and their cultural identity; urges the Indonesian authorities to give free access to independent EU observers into the area;

(s)     Commends the Indonesian government for its efforts in enabling the UNHCR to operate in the country and to assist in the handling of asylum seekers and refugees; notes the importance of public political discourse with a view to broadening society’s support for asylum seekers and refugees; suggests, in addition, that Indonesia and the EU fully implement Article 34 of the PCA with a view to cooperating on migration issues, including legal and illegal migration, smuggling and trafficking in human beings;

(t)     Urges the EU and Indonesia to cooperate closely under Article 4 of the PCA on legal cooperation with a view to the finalisation of Indonesia's ratification of the 1948 UN Convention on the Prevention and Punishment of the Crime of Genocide and the Rome Statute on the International Criminal Court;

(u)    Welcomes the continued Human Rights Dialogue, established in 2010, between the EU and Indonesia and encourages the wider participation and input of civil society in that dialogue and in the implementation of the National Plan of Action of Human Rights;

(v)    Welcomes the 2006, 2008 and 2010 regulations banning female genital mutilation; acknowledges the efforts made by the Indonesian authorities, including the ratification of the Convention to Eliminate All Forms of Discrimination Against Women and the UN Convention on the Rights of the Child, as well as the work done by the National Commission on Violence Against Women (Komnas Perempuan) and local civil society to disseminate information about the dangers of female genital mutilation; notes that, despite those efforts and the adoption of the UN resolution on banning female genital mutilation, that tradition is still practiced in some parts of Indonesia; recommends, in this respect, that the EU and Indonesia cooperate closely under Article 31 of the PCA on health and that they make use of the Human Rights Dialogue in order to exchange best practice aimed at eradicating genital mutilation and minimising the health risks to young girls and women posed by such procedures; calls on Indonesia to redouble its efforts to put an end to this serious form of gender-based violence against girls and women, constituting a gross violation of their human rights;

(w)   Commends the progress made by Indonesia through its National Action Plan for the Elimination of the Worst Forms of Child Labour, and its legal framework to tackle child exploitation;

(x)    Acknowledges the important role played by labour movements in dialogues and negotiations with the Government and other stakeholders to promote working conditions and social security rights in Indonesia; recommends that the cooperation sought under the provisions of the PCA on safeguarding human rights and non-discrimination should address issues relating to gender equality in the workplace and tackling the gender-based pay gap; stresses in particular the importance of specific action to ensure that international core labour standards are comprehensively implemented, given that women workers are still subjected to exploitation and discrimination in the form of overwork, underpayment and abuses by management;

(y)    Stresses that exports from the EU to Indonesia have doubled in the last six years, reaching a value of 9,6 billion euros in 2012; notes that bilateral trade was worth only 25 billion euros, making Indonesia the EU's 29th trading partner and only fourth as an EU trading partner in the region, despite the fact that Indonesia represents 40% of ASEAN’s GDP and population; notes, however, that EU investment in Indonesia is booming, ranking second in terms of foreign direct investment after Singapore, and that 1 000 EU companies have invested over 1 000 billion euros and employ 1,1 million Indonesians;

(z)     Calls on Indonesia and the EU to consider starting negotiations on a free trade agreement, in addition to the cooperation called for within the framework of the PCA, with a view to progressively removing major trade barriers, including strengthening the consultations on compliance with WTO rules, promoting the use of international standards on technical barriers to trade, improving the protection of intellectual property rights, increasing the transparency of trade regulations, developing customs cooperation and promoting a non-discriminatory investment regime, and thereby further increasing trade in goods, investment, services and procurement;

(aa)   Commends Indonesia for its efforts to work in partnership with the EU to eradicate the trade in illegal timber and timber products; notes the signature of the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT –VPA) between the EU and Indonesia in September 2013; notes that the Indonesian timber product exports to the EU rose by 114% in the first quarter of 2013; looks forward to the issuance of FLEGT licences, which certify the legality of timber and timber products, for the importation of Indonesian timber and timber products into the EU, once both sides have assessed that Indonesia's Timber Legality Assurance System (TLAS) is sufficiently robust; and expects that joint regular assessments will examine the capacity of relevant players to implement the FLEGT-VPA;

(ab)  Recognizes the key role of Indonesia and the EU in tackling climate change, given their geo-political and economic importance, territorial extent and population size, welcomes the increasing role of Indonesia in international climate change negotiations; praises Indonesia’s ambitious plans, announced in 2009, to cut the growth of emissions and its call for international support to help the country to achieve even greater reductions; notes that deforestation and land use change are mainly responsible for greenhouse gas emissions in Indonesia but that the growing energy sector is expected to take over from forestry by 2027; therefore calls on the parties to the PCA to immediately establish pursuant to Article 23 of the PCA on energy, an institutionalised bilateral cooperation mechanism which could be built on the example of the UK Climate Change Unit (UKCCU) Indonesia established in 2011, in order to diversify energy supplies by developing new and renewable forms of energy and their transmission infrastructures to connect renewable energy to centres of demand and to achieve a rational use of energy in order to combat climate change and promote sustainable development;

(ac)   Expresses serious concern over the effects of the growing demand for palm oil on deforestation in Indonesia, which is the world's biggest producer and consumer of palm oil; welcomes the moratorium on the clearing of new forest decided by the Government in 2011 but urges that measures be taken to close the numerous loopholes which so far have greatly diminished its effects;

(ad)  Welcomes the aviation agreement signed by the EU and Indonesia in 2011, which removes nationality restrictions in bilateral air services and is a step towards strengthening overall cooperation between the EU and Indonesia; recommends that further steps be taken under Article 34 of the PCA on transport, in particular the establishment of a close dialogue in the field of maritime and land transport to enhance the infrastructure in the Indonesian archipelago, as well as measures to fully implement international transport security, safety and pollution prevention standards;

(ae)   Expresses alarm over the annually recurring forest fires, which are largely blamed on palm oil plantations, logging firms and farmers as a means of clearing land for planting but which add to global warming, making Indonesia one of the highest emitters of greenhouse gases; welcomes the promise by the Indonesian Government to ratify the ASEAN Agreement on Transboundary Haze by early next year, and urges the authorities to take more effective preventive measures as a matter of urgency;

(af)   Notes that tourism is one of the leading sectors of the Indonesian economy; stresses in this regard that Article 17 of the PCA provides an excellent opportunity to exchange information and to establish best practices with a view to maximising the Indonesian potential of natural and cultural heritage and mitigating negative impacts, such as pollution or damage to marine ecosystems, in order to develop sustainable tourism models and to increase the positive contribution of tourism whilst respecting the interests of local communities;

(ag)   Notes that the people-to-people exchanges between Indonesia and the EU have been implemented via the Erasmus Mundus II programme, which awarded 200 scholarships between 2008-2010; acknowledges that the European Commission envisages workshops and seminars to increase Indonesian SMEs' understanding and knowledge of international standards and quality requirements; however, urges further intensification of student and academic staff exchanges and the establishment of regular training schemes under Article 25 of the PCA on culture and education, as well as exchange of best practices and know-how in the field of tourism, entrepreneurialism and languages; in addition, calls on Indonesia and the EU in this context to look into starting negotiations on visa facilitation with a view to increasing people-to-people exchanges;

(ah)   Notes that, between 2007 and 2013, approximately 400 million euros were provided by the EU to Indonesia by way of development assistance; recognises that, as of 2014, Indonesia will no longer be eligible for Multiannual Indicative Programmes (MIP) after having achieved the status of lower middle income country, while it continues to benefit from the EU’s Generalised Scheme of Preferences; urges Indonesia, therefore, to continue to implement the policies prioritised and funded previously by MIPs, such as those relating to education, trade and investment, law enforcement and justice, general capacity-building and climate change; believes that the bilateral cooperation under the PCA, combined with financing from the European Investment Bank, and any future economic partnership agreements, will play a vital role in furthering such priorities in Indonesia;

(ai)    Suggests that Indonesia and the EU identify areas of cooperation under the provisions of the PCA, in order to better implement and manage Indonesia’s Economic Master Plan (MP3EI), by exchanging know-how and best practice for public-private partnerships and, as part of the G20 obligations of Indonesia and some of the EU Member States, that they cooperate closely in tackling profit shifting and tax avoidance and establishing the automatic exchange of tax information;

(aj)   Urges the EU, within the framework of the PCA, to support Indonesia’s efforts to modernise its public administration, in particular by building capacities for policy design and implementation and reinforcement of the judiciary and law-enforcement institutions;

(ak)  Calls for EU-Indonesia cooperation in implementing the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and to conserve and manage in a sustainable manner natural resources and biological diversity, namely forest, marine and fisheries resources; expresses concern at the increase in deforestation by the private sector for palm oil and rubber plantations, to the detriment of monoculture;

(al)    Welcomes Indonesia’s ratification of the United Nations Convention on the Law of the Sea and calls on the EU to offer assistance in the institutional and other reforms needed to comply with that Convention and to enhance maritime security in the region;

(am)  Welcomes the PCA, which testifies to the growing importance of EU-Indonesian ties and opens a new era in bilateral relations by strengthening political, economic and sectorial cooperation across a wide range of policy fields, by facilitating trade and investment flows and people-to-people exchanges, including in the context of EU-ASEAN initiatives, as well as enhancing cooperation between Indonesia and the EU in responding to global challenges, in addition to the existing cooperation in the context of other international organisations, in which both the EU and Indonesia are playing an increasingly important role; stresses that bilateral and multilateral cooperation may foster conflict resolution at the regional and global level and improve efficiency in asset recovery and fighting terrorism, piracy, organised crime, money laundering and tax havens; welcomes, therefore, the fact that all the Member States have ratified the PCA, which was signed as long ago as 2009;

2.  Instructs its President to forward this resolution to the Council and to the Commission.

• [1]  OJ L 144, 10.6.1980, p. 2.
• [2]  OJ C 272 E, 13.11.2003, p. 476.
• [3]  OJ C 68 E, 18.3.2004, p. 617.
• [4]  OJ C 87 E, 7.4.2004, p. 528.
• [5]  OJ C 247 E, 6.10.2005, p. 147.
• [6]  OJ L 264, 8.10.2011, p. 2.
• [7]  OJ C 33 E, 5.2.2013, p. 201.
• [8]  OJ C 239 E, 20.8.2013, p.1.
• [9]  OJ L 154, 15.6.2012, p. 1.