President Jokowi Forms Negotiation Team of International Trade Agreements

In order to implement the provision of Article 86 paragraph (2) of Law No. 7 of 2014 on Trade, the Government considers it necessary to enact a Presidential Regulation on the Negotiation Team of International Trade Agreements. On this consideration, on 18 August 2017, President Joko “Jokowi” Widodo has signed a Presidential Regulation (Perpres) Number 82 of 2017 on the Negotiation Team of International Trade Agreements.

“The Negotiation Team of International Trade Agreements, hereinafter referred to as the PPI Negotiation Team, is a team assigned to conduct the Negotiation of International Trade Agreements to achieve the objectives outlined by the Government of Indonesia for the sake of national interest,” reads Article 1 paragraph (3) of the Regulation.

According to the Regulation, to enhance market access as well as protect and secure national interests, the Government may engage in trade cooperation with other countries and/or international institutions/organizations.

Such trade cooperation can be carried out through the International Trade Agreements, which, in addition to other countries and/or international institutions/organizations, may also be conducted with other international legal subjects in accordance with the provisions of the laws and regulations.

For the purposes of the Negotiation of International Trade Agreements as intended, according to this Regulation, the Government shall establish a PPI Negotiation Team.

The tasks of the PPI Negotiation Team are: a. enhance Indonesia’s active role in any International Trade Agreement negotiations either in multilateral, regional, or bilateral forums based on national interests; b. formulate and establish negotiating positions and strategies of an International Trade Agreement based on national interests in an integrated and coordinated fashion so as to maximally safeguard national development plans, programs, and implementation, in particular to enhance international market access and national economic growth; and c. provide direction to the negotiating group. 

Membership

The membership of the PPI Negotiation Team consists of: a. Director: Coordinating Minister for Maritime Affairs; b. Chairman: Minister of Trade.

Members of the PPI Negotiation Team are: 1. Minister of Foreign Affairs; 2. Minister of Law and Human Rights; 3. Minister of Finance; 4. Minister of Health; 5. Minister of Manpower; 6. Minister of Industry; 7. Minister of Energy and Mineral Resources; 8. Minister of Public Works and Public Housing; 9. Minister of Transportation; 10. Minister of Communications and Informatics; 11. Minister of Agriculture; 12. Minister of Environment and Forestry; 13. Minister of Marine Affairs and Fisheries; 14. Minister of Villages, Development of Underdeveloped Regions, and Transmigration; 15. Minister of Tourism; 16. Minister of State Secretary; 17. Cabinet Secretary; 18. Head of National Standardization Body; 19. Head of Investment Coordinating Board; 20. Head of the Food and Drug Supervisory Agency; and 21. Chairman of the Indonesian Chamber of Commerce and Industry.

“The PPI Negotiation Team is under and responsible to the President,” reads Article 6 of this Regulation.

It is stipulated in this Regulation that Chairman of the PPI Negotiation Team is assigned as coordinator and person-in-charge for the International Trade Agreements Negotiation.

To support the execution of the tasks of the PPI Negotiation Team, under this Regulation, Chairman of the PPI Negotiation Team may form a negotiating group for an International Trade Agreement Negotiation as well as stipulate the tasks of negotiating group.

The composition of membership of the negotiating group as intended may be tailored to the needs of each negotiation. “The replenishment, termination, and replacement of the members of the negotiating group as stipulated by the Chairman of the PPI Negotiation Team,” read Article 7 Paragraph (3) of this Regulation.

If deemed necessary, according to this Regulation, Chairman of the PPI Negotiation Team may designate an advisory team, whose task is to provide advice and opinion to the Chairman of the PPI Negotiation Team on the policy of International Trade Agreements negotiation in accordance with national development plans, programs, and implementation.

“The advisory team may come from academics, practitioners, associations, and/or business players,” reads Article 8 paragraph (3) of this Regulation.

If deemed necessary, according to this Regulation, Chairman of the PPI Negotiation Team may appoint experts for an International Trade Agreement, whose task is to provide advice and opinion to the Chairman of the negotiating group. The experts may come from advisory team, academics, practitioners, associations, business players, and/or civil society as required.

The Presidential Regulation stipulates that the costs and expenses required to carry out the tasks of the PPI Negotiation Team are charged to the Ministry of Trade’s budget. The costs and expenses required for the execution of the tasks of the negotiating group are charged to the budgets of each ministry/ non-ministerial government agency and other related institutions.

Meanwhile, all costs and expenses required for the execution of the tasks of negotiating groups, advisory teams, and experts from agencies outside the Government may be imposed on the budget of the Ministry of Trade or funded by the relevant agencies.

Chairman of the negotiating group, according to this Regulation, shall submit a report on the execution of duties in writing to the Minister as the Chairman of the PPI Negotiation Team. The report is submitted at every stage of the International Trade Agreements Negotiation.

Furthermore, the Minister as Chairman of the PPI Negotiation Team shall submit a report of the International Trade Agreement to the President at least once a year or at any time as necessary.

“This Presidential Regulation shall apply on the date of its promulgation,” reads Article 14 of Presidential Regulation No. 82 of 2017, which has been enacted by Minister of Law and Human Rights Yasonna H. Laoly on 22 August 2017. (JDIH Kemenkumham/ES) (MUR/YM/Naster).