ABSTRACT
This chapter investigates Indonesia and EU-Indonesia relations. Indonesia’s economic growth has been underpinned by a huge variety of natural resources at its disposal. After the Amazon, it is the world’s most heavily forested region, and it also has rich deposits of hydrocarbons and minerals. Many of these natural assets have also been developed for export. The country is the second largest exporter of coal after Australia and the world’s largest exporter of palm oil – the latter accounting for a large proportion of its trade with the EU. Indonesia has diversified its export base beyond fossil fuels over the past 15 years, but it has also become increasingly dependent on coal to meet rising domestic energy demand. Overall, Indonesia is an increasingly important partner for the EU, as it is both a major economy and a leading voice within the Association of Southeast Asian Nations (ASEAN). The chapter argues that the EU has established a fruitful basis for cooperation, with ongoing negotiations on a comprehensive economic partnership agreement enhancing the potential for further cooperation, including in areas that are relevant for decarbonisation.
