Indonesia-Switzerland Commitment on Economic and Environmental Sustainable Issues

2022.03.07

Indonesia and Switzerland’s commitment to sustainable economic and trade cooperation has started since the rising issue from cocoa to sustainable Indonesian palm oil. Through the cooperation, both countries discussed Indonesia’s strategic content in managing palm oil in the amidst of Indonesia’s oil scarcity. Palm oil has become Indonesia’s reliable commodity which has a high global value chain. In addition, the circulation of palm oil trade has become one of international concerned because of its useful functions. One of the countries, which is interested to be involved in resolving the problems of palm oil and cocoa, especially related to environmental and health issues in Indonesian plantation commodities, is Switzerland.

In the cocoa sector, Switzerland has facilitated the training of approximately 160,000 cocoa farmers in sustainable agricultural practices and has resulted in an increase in annual yields of 49%. Switzerland contributes to the establishment of sustainable value chains, the response related to gender in the management of public resources, the use of new technologies and environmentally and climate sensitive budgeting. Switzerland aims to help Indonesia in resolving development challenges. Besides, Switzerland is also intended to make Indonesia become more competitive, resilient, resource efficient, and thus become an increasingly important political and economic partner for Switzerland as a country concerned with sustainable economic development and the environment (State Secretariat for Economic Affairs SECO, 2021).

The meeting between Indonesia and Switzerland on 24 February 2022 through the 9th meeting of the Joint Economic and Trade Commission (JETC) discussed global supply value chain issues in relation with Indonesian palm oil. Through a statement, Directorate General of American and European Affairs, Ministry of Foreign Affairs of the Republic of Indonesia hoped that Switzerland’s government would be able to receive Indonesian Sustainable Palm Oil (ISPO) certification as one of the four certifications which had been recognised in the Switzerland Palm Oil Ordinance. Switzerland has a commitment to help Indonesia to increase the capacity of Indonesian small-scale farmers through the 2021-2024 development cooperation scheme (Ministry of Foreign Affairs of the Republic of Indonesia, 2022).

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