The overall objective of the assignment is to identify the opportunities (market potential, competitiveness, market opening etc.) and challenges (regulatory obstacles, investment climate, fair competition etc.) that the Indonesian market poses to EU companies, which will provide the basis for enhanced cooperation through different avenues (FTA negotiations, bilateral dialogue and cooperation etc.) for the mutual benefit of the EU and Indonesia.
The specific objectives of the assignment are to:
Provide an analysis of the evolution in EU trade and investment flows (EU exports and EU direct investment) towards Indonesia, identifying the main drivers and constraints behind those developments;
Identify industrial and service sectors of particular EU relative competitiveness in trade and investment with Indonesia: namely, those sectors where the EU is currently competitive and the EU has a good potential to perform well in the future on the Indonesian market;
Identify the main market access obstacles that are impeding EU industrial and service operators in maximising their competitive advantage in trade and investment relations with Indonesia and a quantitative assessment of the economic cost of these obstacles;
Present recommendations on public policy actions, in particular in terms of EU trade policy that could be undertaken to remove or alleviate the identified obstacles and the most appropriate instrument/fora to this end (e.g. FTA negotiations, bilateral dialogue/cooperation, WTO consultations etc).