April 20, 20221h7tj

Policy paper

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Published 19 April 2022

Contents

1. Trade, Investment, and Economic Cooperation
2. Defence, Security, and Political Cooperation
3. Climate Change, Low Carbon and Sustainable Development
4. Research and Innovation, Life Sciences, Health, and Education
5. Foreign, Multilateral, and Regional Cooperation

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1. Indonesia and the UK are committed to a strategic partnership that delivers for the mutual benefits and respect of both countries and peoples, and contributes to the maintenance of peace, freedom, and prosperity in the Indo-Pacific.

2. Building on the 2012 Joint Statement on the closer cooperation between Indonesia and the UK, by 2030 our vision is of dynamic connections between our people; significantly increased two-way trade and investment flows; stronger links shaping the digital technologies that will determine the future of our online world; enhanced political, security and defence cooperation that supports a secure, prosperous and stable Indo-Pacific region with ASEAN at its centre and protects our people against physical and online threats; innovative and future-focused collaboration on health and life sciences; and sustained UK-Indonesia leadership on climate, clean energy and sustainable development.

3. Indonesia and the UK are vibrant democracies and leading economies. We are determined to use our strengths to address global challenges on the basis of a common commitment to multilateralism, international law, our shared multilateral institutions, the promotion and protection of human rights, including the right to development, and the achievement of the Sustainable Development Goals.

4. Indonesia welcomes the UK becoming an ASEAN Dialogue Partner, and Indonesia and the UK look forward to continuing to deepen cooperation within this framework, including in implementing the ASEAN Outlook on the Indo-Pacific, which the UK supports. The UK will support Indonesia’s 2023 ASEAN Chairmanship and Indonesia’s Presidency of the G20 in 2022.

5. The Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom (hereafter “Foreign Secretary”) and the Minister for Foreign Affairs of the Republic of Indonesia (hereafter “Foreign Minister”) agreed to endorse the UK-Indonesia Partnership Roadmap that directs future objectives for the bilateral cooperation and joint activities between Indonesia and the UK.

6. Indonesia and the UK will review the progress of this Roadmap on the basis of reports from the UK-Indonesia Partnership Forum. The Foreign Secretary and Foreign Minister will lead the delivery of the Roadmap through the Partnership Forum, which will continue to meet regularly, assisted by Senior Officials as appropriate, and will invite a guest minister(s) as agreed by both sides.

Trade, Investment, and Economic Cooperation

7. We recognise the potential to increase free and fair trade, and investment through further development of our complementary economies. Both countries recognise that the Covid-19 pandemic has highlighted the need to collaborate through bilateral and multilateral channels to ensure global supply chains resilience. In this regard, both commit to further enhance cooperation in trade and investment, creative economy, and digital technology.

8. On trade, we will:

a. Follow up on the first UK-Indonesia Joint Economic Trade Committee (JETCO) in 2022. We will use the JETCO as the forum to deliberate and agree on our joint ambition for our future trade relationship, including next steps such a potential enhanced trade partnership and actions to promote trade in key sectors.

b. Start discussion on exploring a potential FTA under the JETCO mechanism.

c. Promote regular exchange of information between relevant institutions in Indonesia and the UK to support sustainable production and non-discriminatory, two-way sustainable trade based on mutual respect of national legislation and mutual understanding of standards and certification processes notably on exploring mutual recognition on standards and certification and other approaches, where legally feasible. The initial focus will be on exchanging information on the relevant legal frameworks covering the scope of commerce concerned with the aim of promoting seamless, two-way, non-discriminatory trade.

d. Strengthen mutual efforts to stimulate and increase bilateral trade impacted by the Covid-19 pandemic, including through the diversification of export products.

9. On investment, we will:

a. Enhance collaboration to promote investment cooperation involving Indonesia and the UK’s organisations/financial institutions and businesses, to support the delivery of sustainable infrastructure projects, support upstream and downstream industry, low-carbon industry, electric vehicles, and green technology. The UK will present its offer of integrated support towards the delivery of sustainable infrastructure projects in Indonesia including through UK Export Finance (UKEF) and investments from British International Investment (BII), which will be entering the South East Asian market in 2022.

b. Facilitate business-to-business discussions on the development of electric mobility ecosystem, including battery production such as processing of mineral resources, including nickel.

c. Support UK private sector investment and technology transfer on mutually agreed terms to establish vaccine manufacturing capabilities in Indonesia.

d. Strengthen and broaden contact and networks between businesses and investors to increase investment, including through business contact and match-making, to gain inputs from the business perspective.

e. Work to deliver enhanced and structured investment partnerships, to be in place by 2024, leading to sustained two-way investment flows and growth in the UK and Indonesia.

f. Intensify innovative financing for green investment projects by encouraging the realisation of the commitment expressed during the CEO Roundtable in Glasgow in November 2021 and broadening networks with reputable investors/financing agencies.

10. On digital economy, we will:

a. Strengthen cooperation to support the development of ICT infrastructure and digital transformation in Indonesia, including high technology, digital economy, and industry 4.0.

b. Promote and enhance business-to-business cooperation in digitally-enabled sectors, and explore opportunities for deeper future cooperation on digital technologies, including through training and education.

c. Beyond 2022, the UK and Indonesia will work to ensure that technologies of the future are shaped by our shared democratic values, including to unlock our digital potential to bring the benefits of technology solutions to businesses and consumers, and drive digital transformation.

d. Promote dialogue to increase contacts and network between entrepreneurs to share experiences and in enhancing collaboration to amplify existing digital ventures.

11. On creative industry, we will enhance cooperation on the creative economy to support economic recovery and growth.

Defence, Security, and Political Cooperation

12. Indonesia and the UK share views on the importance of collaboration to address common challenges in defence and security, including counter-terrorism, cyber security, maritime security, and trans-national crimes. Both are committed to strengthening cooperation in bilateral political, security and defence ties to ensure peace and stability in the region, such as through enhancing strategic dialogue, sharing best practices, international cooperation, strengthening technical and human resources capabilities, and other concrete collaboration.

13. Indonesia and the UK also recognise that the 21st century will be shaped as much by online and digital developments as by those in the physical world. The threats we all face will become more complex, requiring greater international collaboration.

14. On defence cooperation, we will:

a. Explore opportunities to enhance practical exchanges, joint training, delegation visits, exchanges between military academies and joint defence exercises, including through organising joint training related to Maritime Security purposes such as HA/DR between the Indonesian Navy and the Royal Navy in the year 2022/2023 and joint exercise with special skill enhancement such as Jungle Warfare Exercise between the Indonesian Army and the British Army in the Year of 2022/2023.

b. Promote opportunities for defence industry collaboration, skill and knowledge transfer, supporting security as well as jobs and economic growth in both countries. This includes through the recent and welcome agreement on building British Arrowhead 140 frigates in Indonesia with the Indonesian Navy’s approved design.

c. Intensify the concrete implementation of the Memorandum of Understanding on Defence Cooperation, including through the annual Joint Defence Cooperation Dialogue (JDCD) and Military-to-Military Talks under the JDCD mechanism.

d. Renew the Memorandum of Understanding between the Ministry of Defence of Indonesia and the UK that will expire in October 2022.

15. On counter-terrorism, we will:

a. Sustain our close counter-terrorism cooperation, including through the actions agreed at the Joint Working Group on Counter-Terrorism.

b. Reinforce collaboration between the UK and Indonesia to disrupt global and regional movement of Foreign Terrorist Fighters and flows of terrorist finance, reinforcing Indonesian efforts to achieve Financial Action Task Force status.

c. Promote cooperation between the Participants, law enforcement, and other government agencies in preventing and disrupting terrorism, including on preventing terrorist use of the internet, and deradicalisation.

16. The UK will reaffirm long-held respect for the sovereignty and territorial integrity of Indonesia, including the provinces of Papua and West Papua, and that the UK reaffirms that it does not support activities or views of any individual or entity which advocate against that territorial integrity, including any cross border crimes and terrorist acts, without prejudice to each other’s legal frameworks.

17. On cyber security, we will:

a. Continue dialogue and exchange views on wide-ranging cyber security issues, technological development, and other agreed issues in the Cyber Dialogue.

b. Explore renewal of the Memorandum of Understanding on Cyber Security Cooperation that will expire in 2023.

c. Encourage exchange of views and best practices concerning national strategy on cyber and the digital age, and seek the possibility to support the development of Indonesia’s future strategy on cyber security.

d. Collaborate to enhance the security of Critical National Infrastructure including through three threat exercise simulations in 2022, and completion of an agreed project that will enhance cyber security in the financial sector in 2022.

18. On transnational crime, we will strengthen efforts to ensure facilitation of international legal cooperation, including extradition and mutual legal assistance in criminal matters requests (MLA).

19. On maritime cooperation, we will:

a. Extend the Memorandum of Understanding on Maritime Cooperation signed in 2019, which will expire on 17 June 2022.

b. Hold a regular bilateral UK-Indonesia maritime dialogue as an implementation of the Memorandum of Understanding on Maritime Cooperation to discuss issues related to the implementation of the 1982 UNCLOS and its relevant frameworks, including on fisheries, marine environment and capacity building.

Climate Change, Low Carbon and Sustainable Development

20. We reaffirm the Paris Agreement temperature goal of holding the increase in the global average temperature to well below 2 degrees celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees celsius above pre-industrial levels.

21. We welcome the outcomes of COP26 UNFCCC and recognise the urgent need to keep 1.5 degrees celsius alive and for all countries to implement the Glasgow Climate Pact; including revisiting and strengthening as necessary their Nationally Determined Contributions (NDCs) to align with the Paris Agreement temperature goal. We reiterate the importance of implementation of financial and technology support to achieve global climate goals, including through the fulfilment of financial pledge from developed countries and of the commitment to balance climate adaptation and mitigation. We are determined to work together to role model and support the achievement of our global and national climate commitments, and in doing so ensure sustainable and inclusive economic development.

22. We will strengthen and enhance global climate ambition throughout our respective Presidencies of COP26 UNFCCC (Glasgow Climate Pact) and G20, including toward achieving global net zero and NDCs that align with the Paris Agreement temperature goals, recognising the principles of equity, common but differentiated responsibilities, and respective national capabilities.

23. On low carbon development, we will:

a. Collaborate to support the development of Indonesia’s National Medium-Term and Long-Term Development Plan, through Indonesia’s Low Carbon Development Initiative Phase 2 partnership, bearing in mind respective national legislations, including Indonesia’s Presidential Decree No. 98/2021. We will work to ensure stronger financial commitments globally to support countries on resilience and through transition. The Indonesian government efforts to enhance south-south cooperation on climate resilience are commendable.

b. Enhance cooperation in the field of carbon markets and trade, through the Indonesia-UK dialogue on carbon trade and carbon pricing, in line with Indonesia’s Presidential Decree No. 98/2021 on the Carbon Economic Value to achieve NDC targets, and provide direct technical support on climate change.

24. On forestry and sustainable land use, we will:

a. Promote cooperation aligned with Indonesia’s ambition to achieve net sink for the Forest and Land Use sector.

b. Promote the New Version of SVLK (Sistem Verifikasi Legalitas dan Kelestarian) as an Indonesian Certification of Sustainable Forest Management.

c. Promote progress in the Forest, Agriculture Commodity and Trade (FACT) Dialogue, and promote cooperation to deliver the roadmap of actions aiming to protect forests and other important terrestrial ecosystem while meeting the 2030 Sustainable Development Goals, aligning with the Paris Agreement and working towards better support and incentivisation of sustainable production and trade.

d. Enhance collaboration and share best practices to strengthen relevant stakeholders’ capacity.

25. On low carbon, transportation and renewable energy, we will:

a. Strengthen cooperation on the transition to clean energy in the power and transport sectors, including through concrete implementation of low GHG emissions and energy development to achieve Indonesia’s energy transition and electric vehicle targets. We will explore the potential collaboration on community-based mitigation and adaptation.

b. Galvanise international support through the Indonesia-UK co-chaired, multi-donor Friends of Indonesia Renewable Energy (FIRE) Dialogues to assist Indonesia’s net zero emission by 2060 or sooner through energy transition taking into consideration the document of Indonesia’s LTS-LCCR (Long Term Strategy for Low Carbon and Climate Resilience) 2050.

c. Sharing best practices, knowledge, and expertise for planning and delivering renewable energy projects, including grid reliability and efficiency improvement.

d. Mobilising green finance to support low carbon energy investment.

e. Enhance cooperation in transportation through the signing of MoU on Cooperation in the Transport sector in 2022.

Research and Innovation, Life Sciences, Health, and Education

26. Indonesia and the UK share the view that research and innovation are essential to supporting long-term sustainable growth. Therefore, both have agreed to promote the MoU on Research and Innovation, including through encouraging and facilitating cooperation in research and innovation between policymakers in government, government agencies, research organisations, higher education institutions, companies, and enterprises.

27. We are committed to strengthening health systems, leveraging research and development to health and life sciences innovations, and better preventing, detecting and responding to infectious diseases through an enhanced Indonesia-UK Health Partnership.

28. On research and innovation, we will:

a. Build on existing academic collaboration to increase research and development (R&D) programmes in life sciences and technology.

b. Build new and deepen existing science and technology R&D partnerships, creating deeper links between our research and innovation communities, including working with UK and Indonesian science and innovation communities and consortiums, which could include, for example, the UK-Indonesia Collaboration in Interdisciplinary Sciences (UKICIS).

29. On health, we will:

a. Agree a renewed Joint Action Plan for Health Cooperation to deliver greater ambition on shared priorities including strengthening health systems, improving health outcomes and preventing, detecting, and responding to communicable diseases building on the first Joint Working Group on Health and Life Sciences held on 8 December 2021, among others to:

i. Support and work collaboratively to enable vaccines, therapeutics and diagnostics to be rapidly developed, and deployed – including through collaboration on clinical trials and joint research in medicines – in response to current and future health challenges.

ii. Promote increased networks and connection between the UK and Indonesia’s sectors for digital health and medical technology.

iii. Enhance cooperation in pathogen genomic sequencing, through the development of regional and bilateral networks for surveillance, training and capacity building.

iv. Enhance cooperation in health human resources development, through education and capacity building and technical assistance.

v. Redouble joint efforts to tackle anti-microbial resistance (AMR) through the bilateral partnership and in multilateral fora such as the G20. This includes by enhancing the use of data in policy making, developing AMR projects and surveillance under the Grant Agreement of the Fleming Fund Partnership and the possibility of renewing the agreements, and utilising Indonesia’s G20 Presidency to encourage action on AMR.

b. Welcome the UK-hosted Global Pandemic Preparedness Summit in March 2022, including to promote more global financing for CEPI’s work to end pandemics through investing in the development of variant-proof vaccines against Covid-19 and other major health threats, as well as manufacturing partnerships.

30. On education, we will:

a. Support educational collaboration in international mobility and exchange between the UK and Indonesia, for example through programmes such as the Turing Scheme, and take forward promoting Indonesia as a priority destination for UK providers of higher education to identify and develop trans-national education partnerships with Indonesian counterparts, and improve English Language Training (ELT) capability for Indonesian teachers, through the good offices of the UK International Education Champion.

b. Renew the Memorandum of Understanding on Education signed in 2016, which will expire in May 2022.

c. Intensify regular meetings and dialogue on education.

Foreign, Multilateral, and Regional Cooperation

31. Indonesia and the UK are committed to supporting an open, inclusive, and rules-based multilateral and regional system. Both sides also reiterated a shared commitment to promoting international law and the rules-based international system, including democratic principles, human rights, and fundamental freedoms.

32. Indonesia and the UK will also strengthen cooperation in ASEAN. We will:

a. Work together to firmly promote the ASEAN’s Outlook on the Indo-Pacific principles and objectives in our regional and bilateral partnerships, including through the UK’s role as a Dialogue Partner of ASEAN.

b. Conduct meetings/consultations across the three pillars of ASEAN Community through the ASEAN-led mechanism as well as adherence to the principle of ASEAN Centrality in the conduct of external relations that are inclusive and non-discriminatory.

c. Promote cooperation to support ASEAN Community building efforts including through the implementation of the ASEAN Master Plan on Connectivity 2025.

d. Support ASEAN’s recovery efforts through the ASEAN Comprehensive Recovery Framework and its implementation plan.

e. Support ASEAN’s efforts in strengthening regional capabilities to prepare for, prevent, detect, and respond to public health emergencies, including in developing a resilient regional health architecture.

f. Support the strengthening of the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management (AHA Centre) role in coordinating disaster response and operationalising the One ASEAN One Response Declaration.

g. Support peace and stability in the region in accordance with the principle of the ASEAN Charter and Treaty of Amity and Cooperation, and the ASEAN Outlook on Indo-Pacific.

h. Promote the UK’s engagement to collaborate on the digital economy and digital transformation agenda in ASEAN and the Asia-Pacific region.

33. On multilateral issues, we will:

a. Strengthen the shared commitment to promoting international law and the rules-based international system, including democratic principles, promotion of human rights and promote agreed norms setting.

b. Strengthen coordination and cooperation in multilateral fora, including the United Nations, G20, and the World Trade Organization (WTO), with a view to maintaining global and regional peace, security and prosperity.

c. Promote collaboration to support the success of Indonesia’s G20 presidency, including through advancing concrete deliverables in Indonesia’s G20 key priorities, particularly health, digital transformation and ensuring energy transition is achievable by all, and supporting G20 actions across ministries with responsibility for health, digital economy, energy transition, and finance.

d. Leverage our consecutive G7 and G20 presidencies to accelerate progress on shared priorities including global health security, international tax, infrastructure development and energy transition.

e. Develop together a strengthened international response to Sexual Violence in Conflict, exploring all options for further international action.