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International Partnerships

Indonesia

Indonesia stands as one of the world's fastest growing economies, harboring aspirations to achieve high-income status by 2045. With a population exceeding 270 million, Indonesia ranks as the fourth most populous nation globally, the third largest democracy, and the largest Muslim country. It plays a pivotal role as one of the ten member countries of the Association of South-East Asian Nations (ASEAN).

As a member of the G20 and a significant force in ASEAN integration, Indonesia accounts for approximately 35% of ASEAN's GDP and 42% of its population. Indonesia's unique geographical status as the largest archipelagic country spans over 5,300 km, boasting a wealth of biodiversity and important natural resources. This position also places Indonesia at the forefront of vulnerability to climate change, highlighting its crucial role in global efforts to address environmental and climate challenges.

Our partnership

EU relations with Indonesia are rooted in shared values and strengthened by our common interests. Our relations reflect its position as a G20 member, the world's 3rd largest democracy, and a key player within ASEAN. Our policy-driven cooperation serves mutual interests, in the priority areas of trade, investment and connectivity, green inclusive development, good governance, human rights and human security, strongly interlinked with EU interests.

Our action builds on commitments to the Sustainable Development Goals and is guided by policy frameworks, such as the Global Gateway, the Indo Pacific Strategy, and Indonesia’s Medium and Long-Term Development Plans. Under the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe), the EU allocated EUR 20 million in grant funding to the partnership with Indonesia through the Multiannual Indicative Programme 2021-2027. Indonesia also benefits from the EU regional and thematic programmes.  Investments will also be mobilised through the European Fund for Sustainable Development Plus (EFSD+).

Within a Team Europe approach and using innovative finance, the EU also supports the mobilisation of investments from the European Investment Bank and Development Finance Institutions of EU Member States to support the Global Gateway through the Just Energy Transition Partnership (JET-P) and the EU - Indonesia Green Agenda Team Europe Initiative.

Indonesia also benefits from a number of multi-country EU programmes and, as part of ASEAN, it also cooperates with the EU at regional level. At the EU-ASEAN summit in December 2022, the EU announced an expected investment from Team Europe of around EUR 10 billion for South-East Asia. The EU has two Global Gateway flagships with ASEAN, a Green Team Europe Initiative and a Team Europe Initiative on Sustainable Connectivity. 

8 MARCH 2022
Multiannual Indicative Programme 2021-2027 for Indonesia – decision
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8 MARCH 2022
Multiannual Indicative Programme 2021-2027 for Indonesia – annex
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16 DECEMBER 2021
Annual action plan 2021 for Indonesia
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6 FEBRUARY 2024
Questions and Answers: EU Strategy for Cooperation in the Indo-Pacific
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Our flagship initiatives

Energy

The size of Indonesia, its growth trajectory, its reliance on fossil fuels, and its role as a major producer and consumer of energy in regional and international markets make the country a key partner to achieve the SDGs and the goals of the Paris Agreement at global level.

The Just Energy Transition Partnership (JET-P) with Indonesia is a ground-breaking initiative launched at the G20 Summit November 2022 in Bali. It outlines commitments to ambitious energy transition targets and associated financing. It includes an accelerated power sector emissions reduction pathway to net zero by 2050 and a strategy based on the expansion of renewable energies, the phasing down of on and off-grid coal-fired electricity generation, and further commitments to regulatory reforms and energy efficiency.

One of the aims of the JETP is to mobilise an initial €19 billion in public and private financing over a three-to-five-year period, using a mix of grants, loans, guarantees, and private investments. Together with international partners (Canada, Japan, Norway, UK, and US), the EU and some of its Member States (France, Germany, Denmark and Italy), are key contributors to the JETP. The EU, EIB and the Member States expect to mobilise around EUR 2.4 billion. From this amount, the EU intends to support the JETP via the European Investment Bank (EIB) with EUR 1 billion projects that contribute to the decarbonisation of Indonesia's power system through renewable energy. In addition, the EU will earmark EUR 25 million in grants and technical assistance.

The EU also provides complementary support to the energy transition, e.g. by exploring the potential for off shore wind power, supporting energy connectivity at the ASEAN level, as well as partnerships with Indonesian cities to accelerate local climate action and increase use of and access to clean energy.

Forest and Land-Use

Indonesia’s forests and land ecosystems, including peatlands, are among the most biodiverse on earth. They contribute to the livelihoods of millions in the country through jobs, food and environmental services, and they play a key role in global efforts to tackle the environment and climate crisis.

EU cooperation with Indonesia is guided by respective policy and regulatory frameworks. This includes the EU Deforestation Regulation (EU DR), which aims to ensure that the products that EU citizens buy, use and consume do not contribute to deforestation and forest degradation in the EU and globally. It also includes the bilateral Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT) which supports timber trade legality. Indonesia is the first country in the world to have issued FLEGT licenses.

A key EU funded action on forests is the “Reducing Deforestation and Forest Degradation through Sustainable Agricultural Value Chains and Improved Forest Governance” (SAFE) project, co-funded with Germany and implemented by GIZ. The project supports in particular small holders to adopt improved agriculture practices. The Joint Task Force on EU Deforestation Regulation established in August 2023 between the EU and the Government of Indonesia (and of Malaysia) provides a new platform to identify practical solutions relevant to the Implementation of EU DR and will feed into future EU cooperation activities in Indonesia.

Blue economy

Maritime preservation and development are a priority of the Government of Indonesia, the largest archipelago in the world. The EU shares interests with Indonesia in the conservation and sustainable use of Indonesia’s marine environment, including the protection of ecosystems in the heart of the coral triangle, and the development of sustainable fisheries. EU funded actions cover complementary priorities including:

  • Support to blue economy strategic planning, notably through the development of an Indonesia Blue Economy Index with technical assistance from the EU ARISE+ Indonesia project/arise-plus.
  • Promotion of sustainable fisheries, based on improved ocean science and knowledge in partnership with AFD, dialogue on fisheries policies through the Enhanced Regional Eu-ASEAN Dialogue Instrument (E-READI), and support to the quality assurance system for fish products safety.
  • Contribution to the coastal areas development through the improvements of selected fishing ports through EU grants blended with loans from AFD, environment protection, and support to explore off shore wind-power.
  • The EU contributes to Marine conservation, including efforts to tackle plastic debris and supporting to the management of Marine Protected Areas in partnership with civil society.
Higher education

Indonesia is an active partner country of the EU Erasmus + programme. Indonesia is in the top 12 of countries with the highest number of awardees receiving support to pursue their post-graduate studies in Europe. In addition, the EU awards every year around 100 Erasmus +short-term mobilityscholarships to Indonesian students, lecturers and university staff. Erasmus + also provides grants for Higher Educationpartnerships between higher education institutions. Since 2015, 147 universities in Indonesia have benefitted from these grants. Recent projects with Indonesian universities cover joint priorities such as digitalisation and circular economy.

Digital

Finland contributes to launching Nusantara's next-gen digital infrastructure, including ultrafast broadband (fixed and 5G), Smart Urban Infrastructure and a comprehensive data and application platform for efficient and sustainable city services.