VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesia welcomes the result of Switzerland's referendum on Indonesia-European Free Trade Association Comprehensive Economic Partnership (IE-CEPA). Some 51.6 percent of Swiss supported the implementation of IE-CEPA and agreed to ratify the trade agreement in a referendum on Sunday (7/3).

IE-CEPA is a comprehensive economic partnership between Indonesia and European Free Trade Association (EFTA) member countries, such as Switzerland, Norway, Iceland, and Liechtenstein. The agreement was signed in 2018 after going through 15 negotiations.

After the signing, each country needs to ratify the agreement. Two countries had finished the ratification namely Norway and Iceland.

Previously, the ratification in Switzerland faced rejection in form of a petition from a Swiss NGOs because Indonesian palm oil commodity was accused of harming the environment. According to the Swiss law, the agreement ratification needed public agreement through a referendum.

IE-CEPA includes trade of goods, services, investment as well as capacity building so that Indonesian products can gain market access in form of tariff exemption and reduction concession. Therefore, Indonesian products will be more competitive in EFTA markets.

Indonesia will receive the exemption of 7,042 tariff posts in Switzerland and Liechtenstein, 6,388 in Norway, and 8,100 in Iceland. Indonesia's total export to EFTA in 2020 was 3.4 billion USD with US$1.6 billion surplus for the country.

Responding to the Swiss referendum, Indonesian Trade Minister, Muhammad Lutfi in a statement on Monday (8/3) stated that his sdie is ready to cooperate in trade and investment under IE-CEPA. The agreement recognizes the spirit of cooperation, mutual respect, and mutual benefits for Indonesia's top products, the palm oil and its derivatives.

Minister Lutfi also emphasized that the referendum has a special meaning for the strive of Indonesia and Switzerland in ensuring an open and just trade that become the pillar in the trade agreement. He also remarked that Switzerland is an important trade and economic partner for Indonesia and vice-versa. Thereby, both countries' trade will increase. The minister also explained that with the IE-CEPA ratification by Switzerland, Indonesia will quicken the ratification at the parliament so that it can be implemented soon.

Meanwhile, Coordinating Minister for Economy, Airlangga Hartarto said, the negative campaign against palm oil commodities lacked support from Swiss' public during the IE-CEPA ratification. He also remarked that therefore the Swiss referendum showed international recognition for Indonesia's consistency and commitment in implementing sustainable development principles.