Overview
Indonesia is one of the world's fastest growing economies, with aspirations to achieve high-income status by 2045. With a population exceeding 280 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 situation 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 policy-driven cooperation serves mutual interests, in the priority areas of trade and investment, 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 EU’s Global Gateway Strategy, the Indo Pacific Strategy, and Indonesia’s Medium and Long-Term Development Plans.
The EU allocated €25 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. As a member of ASEAN, Indonesia benefits from the two Global Gateway flagships with ASEAN: Green Team Europe Initiative and a Team Europe Initiative on Sustainable Connectivity. The EU is stepping up its cooperation with Indonesia in facilitating and mobilising investments under the Global Gateway strategy and through the European Fund for Sustainable Development Plus (EFSD+).
The EU works within a Team Europe approach, with Member States such as Germany and France. 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.
EU-Indonesia partnership documents can be found in the 'Related documents' section below.
Our key initiatives
- External dimension of the Green Deal
The EU and Indonesia are engaged in the Just Energy Transition Partnership (JETP), which supports major investments in Indonesia’s shift to clean energy. The EU also works with Indonesia on sustainable forestry, agriculture and ocean management. Specific actions include:
- Helping accelerate Indonesia’s clean energy transition programme, including through several guarantee programmes.
- Supporting the Ministry of Industry with research and with greening industries through the Cooperation Facility (EUICF).
- Financing the Sustainable Agriculture for Forest Ecosystems (SAFE) programme, which includes dialogue on the EU Deforestation Regulation.
- Reducing the climate impact on Indonesian rice production.
- Empowering stakeholders on sustainable, traceable and legal palm oil and timber supply chains.
- Engaging Southeast Asia on deforestation and forest degradation.
- Supporting marine biodiversity and coastal fisheries.
- Fighting the spread of marine debris through the Indonesia Policy Dialogue Fund, as well as the EU-Indonesia Cooperation Facility.
- Planning a more circular economic strategy through the EUCIF and global Partnership for Action on Green Economy.
- Trade, investments, private sector development and connectivity
The EU works with Indonesia on enabling environment, transport, digitalisation and higher education / people to people connectivity. In the field of transport, through several regional programmes including Indonesia, the EU works to facilitate sustainable transport connectivity between EU and ASEAN as well as within ASEAN.
Specific actions include:
- Supporting the EU Desk at the Ministry of Investments to boost and facilitate investments.
- Supporting infrastructure investments, to help local governments access financing and prepare bankable green infrastructure projects.
- Improving the enabling environment for investment, supporting improvements on regulatory framework and policy reforms.
- Through SCOPE Digital, the EU aims to expand the development of Copernicus earth observation services in the Philippines to other countries in South-East Asia, starting with Indonesia.
- In the field of transport, through several regional programmes including Indonesia, the EU works to facilitate sustainable transport connectivity between EU and ASEAN as well as within ASEAN.
- Supporting the ASEAN Power Grid initiative.
- Improving evidence-based and sustainable ocean management in Indonesia, including port infrastructure, coastal protection, and oceanic research.
- Supporting the development of human resources in Indonesia through its flagship programmes Erasmus+ and Horizon Europe.
- Investing in the development of Indonesia’s healthcare sector. That includes strengthening East Java and Southern Sulawesi university teaching hospitals in their ability to provide care during epidemics.
- Governance, human rights, security
The EU works with Indonesia on a wide range of socio-political issues, specifically building up civil society, strengthening human rights and democracy, and bolstering security. Specific EU actions include:
- Building a better environment for a stronger Indonesian civil society.
- Strengthening civic space and enhancing civil society organisations’ ability to promote a just and inclusive green transition.
- Working with local civil society organisations to defend forest livelihoods.
- Strengthening the leadership of the Indonesian National Commission on Violence against Women, while helping them implement the Law on Sexual Violence Crimes and other relevant laws.
- Building up a resilient media ready to fight digital threats, safeguard journalists, and preserve democracy.
- Empowering human rights defenders to advance access to justice for women.
- Supporting Asian countries’ resilience to violence extremism online.
- Migration
The EU works with Indonesia on immigration issues at the regional level with its Southeast Asian partners. Specific actions include:
- Promoting regular and safe labour migration within Southeast Asia.
- Promoting corporate responsibility and migrant worker rights.
- Ensuring access of labour immigrants to decent work and reducing the vulnerability of immigrant women and children within Southeast Asian value chains.
