Trade deal fueling resource grab? 120+ groups from Europe and Indonesia sound the alarm
Over 120 civil society organizations and trade unions from Indonesia and Europe today call on the Indonesian government and the European Union to stop the negotiations for the Indonesia-EU free trade agreement – the Comprehensive Economic Partnership Agreement (CEPA).
The organizations warn that this agreement threatens the environment, climate, and the rights of women, Indigenous Peoples, workers, small farmers and fisherfolk. A flashpoint is control of globally valuable nickel resources and the ability to ensure these are managed sustainably in a way that benefits local communities in Indonesia.
Indonesia and the European Union have been negotiating the EU-Indonesia trade agreement since 2016. Both sides have signaled that they want to bring the negotiations to a conclusion soon.
Rachmi Hertanti of the Transnational Institute based in Indonesia said:
“The free trade agreement would require the raw materials sector to be fully opened to global markets and foreign corporations. It would limit measures currently in place to encourage processing of raw materials such as nickel in the country, creating jobs and adding value. Indonesia has abundant natural resources, but to support its people’s development we need to limit the over-extraction of raw commodity exports that only benefits transnational corporations.
“The trade agreement risks trapping Indonesia in low-value trade and undermining energy democratisation by liberalising critical mineral policies that remove policy space for the Indonesian government to protect people's livelihoods.”
Fanny Tri Jambore of WALHI in Indonesia said:
“Indonesia’s development of its natural resources needs to be done in a sustainable and responsible manner - we need to protect the planet, local communities and workers rights. There are far too many bad examples and we are pushing for measures to improve. However this trade agreement risks undermining these efforts, which could have dire consequences for people and nature.”
Marius Troost of Both ENDS in the Netherlands said:
“The EU’s obstinate dash for maximum market liberalisation has actually had the effect of shooting itself in the foot. While the EU has been fighting Indonesia over trade rules, China has invested tens of billions in the nickel mining and refining industry in Indonesia and is now dominant in the sector. Europe needs to build a more equal partnership with Indonesia, for mutual benefit, respecting each other’s needs and paying a fair price.”
Julie Zalcman, trade campaigner at Friends of the Earth Europe said:
“Critical raw materials are necessary for the energy transition but their exploitation should not happen at the expense of human rights, biodiversity and water. The EU must seriously question its demand for raw materials and adopt consumption reduction targets, before rushing to extract ever more resources from a finite planet.”