The illustration shows the Indonesian and EU flags against a blue background and a net connecting various symbols of their co-operation

Partnership for the Future

Indonesia today stands at a crossroads where it uses its historical experience to find its role in the global community. For the EU, the country offers great potential as a global partner.

The relationship between the European Union (EU) and Indonesia is not easy to grasp for many people. It is often perceived as less important due to the geographical distance between the two regions. But on closer inspection, it becomes clear that the history of social, cultural and political relations between Europe and Indonesia is deeply rooted and of great importance. These relationships go back a long way and have had a significant impact on the dynamics of modern societies in both regions.

From the colonial era to the modern age

Before the arrival of Europeans in Indonesia and Southeast Asia, the region was dominated by various indigenous forces. These were often involved in tribal wars, and the system of government was highly centralized, characterized by primordialism (which emphasizes that ethnic identities are a natural and fundamental source of social bonding and solidarity) and a low respect for human rights. This era was often perceived as an exploitative relationship between the rulers and their people, as Samuel Popkin describes in his work "The Rational Peasant". Popkin argues that the power structures of the time oppressed and exploited the people, mainly through high tax burdens levied on the kings.

On the other hand, there is the view of James C. Scott, who emphasizes in his book "The Moral Economy" that the relationship between the people and the traditional bureaucracy in Southeast Asia was quite protective. Scott explains that the people lived in a system in which they expected protection from their king, which stabilized the balance of power and secured daily life. This dual perspective on the historical relationship between rulers and subjects in Southeast Asia shows that reality was often more complex than it seems at first glance.

European influence, especially that of the Dutch, who colonized Indonesia over several centuries, had a lasting influence on the development of Indonesian society.

With the arrival of Europeans in Southeast Asia and especially in Indonesia, the social dynamics changed considerably. Colonization not only brought with it new political and economic structures, but also led to a profound change in social and cultural conditions. European influence, especially that of the Dutch, who colonized Indonesia over several centuries, had a lasting impact on the development of Indonesian society.

Concepts such as nationalism, revolution, human rights and democracy, which originated in Europe, were exported to Indonesia and had a lasting impact on the culture and politics there.

China and Europe

Indonesia is geostrategically located in a region shaped by both Chinese and European influences. While China has an ancient influence on the development of Asian civilization and culture, Europe brought modern ideas and concepts to the region. These influences found fertile ground in Indonesia and shaped the development of society in a unique way.

China's influence on Indonesia and Southeast Asia can be traced back to ancient times. Through trade and cultural exchange processes, especially along the Silk Road, Chinese ideas and products reached Southeast Asia. At the same time, independent cultural traditions developed in Indonesia, which were shaped by both the indigenous peoples and the migrants from China. However, this cultural exchange was not one-sided. Indonesia also influenced Chinese culture, mainly through the trade in spices and other valuable goods that were abundant in the region.

The Europeans, on the other hand, brought new ideas and technologies to Indonesia during the colonial period. They introduced a modern administration and promoted the development of infrastructure, which profoundly changed the country. But in addition to these material changes, it was above all the ideological influence that had a lasting impact on Indonesian society. The concepts of human rights, freedom and democracy that were developed in Europe during the Enlightenment found their way to Indonesia and were integrated into the political discourse there.

Exchange of ideas

A central aspect of relations between Europe and Indonesia is the exchange of people and ideas that has taken place over centuries. The migrations that took place from both southern China and Europe to Southeast Asia brought far-reaching changes to the region. Especially the Austronesians, who originally came from southern China, played a central role in the socio-cultural development of Indonesia. Their migration led to a mixing of cultures and the emergence of new social structures.

However, these migrations were not limited to the preceding centuries. Cultural exchange continues in modern times as well. The Chinese diaspora in Southeast Asia, especially in Indonesia, has a significant impact on local culture and economy. At the same time, European ideas have also spread further in the region, especially through education and the introduction of modern political systems.

The Chinese diaspora in Southeast Asia, especially in Indonesia, has a significant impact on local culture and economy.

The Europeans brought not only their technologies and administrative systems to Indonesia, but also their values and ideologies. The ideas of the Enlightenment, such as freedom, equality and human dignity, were exported to Indonesia during the colonial era and profoundly shaped social and political life. These ideas ultimately led to the emergence of nationalist movements that rebelled against colonial oppression and promoted Indonesia's independence.

Silk Road and the Spice Route

The Silk Road, which connected Asia to Europe for thousands of years, played a crucial role in the exchange of ideas and goods between the two regions. The influence of the Silk Road on the development of Asian civilizations can hardly be overestimated.

Similarly, the spice route that ran through the Indonesian archipelago was of great importance for trade between Europe and Southeast Asia. European demand for spices drove the colonial powers to control trade routes and establish colonies, which in turn led to increased cultural and political interaction.

Historical records show that there were two main strands of trade in the region: land trade along the Silk Road and maritime trade along the Spice Route. The influence of these trade routes was not limited to economic exchange, but also promoted cultural and religious dialogue between the different peoples of Asia and Europe.

Close cooperation

Modern relations between the European Union and Indonesia are the result of this long history of exchange and cooperation. After Indonesia's independence in 1945, both regions began to put their relations on a new footing. The EU recognised Indonesia's potential as a key partner in South-East Asia and began to deepen political, economic and cultural ties.

Over the past decades, relations between the EU and Indonesia have developed steadily. The EU is now one of Indonesia's most important trading partners, and the two sides work closely together in areas such as development aid, environmental policy and human rights. The EU supports Indonesia in its efforts towards sustainable development and the promotion of democracy and the rule of law.

The EU is now one of Indonesia's most important trading partners, and both sides work closely together in areas such as development aid, environmental policy and human rights.

At the same time, Indonesia recognises the importance of the EU as a global actor and partner in international affairs. EU-Indonesia cooperation also extends to multilateral forums such as the United Nations and the World Trade Organisation, where both sides share common interests.

Robust economic relations

Economic cooperation is a key pillar of EU-Indonesia relations. The EU is one of Indonesia's largest trading partners and bilateral trade has increased significantly in recent years. In 2022, the trade volume between the EU and Indonesia was over 26 billion euros. Trade includes a wide range of products, including machinery and vehicles, chemicals, agricultural products, and textiles.

An important agreement in the economic relationship between the EU and Indonesia is the Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation since 2016. This agreement aims to reduce trade and investment barriers, deepen economic cooperation and promote sustainable economic growth in both regions.

Although the negotiations are challenging due to complex issues such as customs tariffs, investment protection and sustainable development, both sides see the CEPA as an important instrument for strengthening their economic relations.

Indonesia exports a wide range of products to the EU, including palm oil, textiles, footwear and fishery products. Palm oil is particularly controversial because there are concerns about sustainability and environmental protection in Europe. Indonesia, one of the world's largest producers of palm oil, is facing strict EU regulations aimed at preventing deforestation and habitat destruction. These tensions have led to intense negotiations to find a compromise that takes into account both Indonesia's interests and the EU's environmental standards.

On the other hand, the EU is a major supplier of machinery, automobiles, chemicals and pharmaceuticals to Indonesia. European companies see Indonesia as a promising market with a growing middle class and a high need for infrastructure development. Investments in areas such as renewable energy, infrastructure and digital technologies have increased in recent years, leading to deeper economic exchanges between the two regions.

Peace and stability

In addition to economic cooperation, political relations between the EU and Indonesia have also developed well. Both sides share the goal of promoting peace, stability and prosperity in their respective regions. Indonesia is recognised as a major player in South-East Asia and the EU sees cooperation with the country as an opportunity to strengthen its presence and influence in the region.

The EU and Indonesia work closely together in various international forums, including the United Nations (UN), the World Trade Organization (WTO) and the Asia-Europe Meeting (ASEM). This cooperation covers a wide range of topics, including human rights, democracy, sustainable development and the fight against climate change. Indonesia, the largest Muslim country in the world, also plays an important role in promoting intercultural and interreligious dialogue, which is valued by the EU.

Indonesia and the EU are working together to combat regional and global security threats such as terrorism, piracy, illegal fishing and human trafficking.

An important instrument of political cooperation is the Partnership and Cooperation Agreement (PCA), which came into force in 2014. This treaty provides the legal framework for bilateral relations and covers a wide range of areas such as political dialogues, trade, investment, justice, human rights and environmental issues. The PCA has enabled both sides to put their cooperation on a firmer footing and to exchange views on important issues more regularly.

There is also close cooperation in the field of security policy. Indonesia and the EU are working together to combat regional and global security threats such as terrorism, piracy, illegal fishing and trafficking in human beings.

Indonesia has a strong interest in securing its sea routes, which are crucial for global trade, and the EU supports these efforts through various initiatives and programmes.

Sustainable development and environment

Sustainable development and environmental protection are other key elements of modern EU-Indonesia relations. Both sides recognize the importance of climate change and the conservation of natural resources and are working together to find solutions to address these global challenges.

The EU is one of the largest donors of development aid in Indonesia and has launched numerous programmes to promote sustainable development in various areas. These programmes focus on promoting renewable energy, supporting sustainable forestry, protecting biodiversity and promoting environmentally friendly agricultural practices, among other things.

Special attention is paid to the protection of Indonesian forests, which are among the most biodiverse and ecologically valuable in the world. Deforestation in Indonesia, driven by illegal timber harvesting, slash-and-burn agriculture and the expansion of palm oil plantations, poses a significant threat to the global environment. The EU has supported programmes to combat deforestation, including the EU's Reducing Emissions from Deforestation and Forest Degradation (REDD+) programme, which aims to reduce CO2 emissions through the protection and sustainable use of forests.

Another important area of cooperation is the promotion of renewable energies. Indonesia has great potential for the use of renewable energy sources such as geothermal, hydropower, solar energy and wind power. The EU supports Indonesia in developing these resources to reduce dependence on fossil fuels and support the transition to a sustainable energy future. This cooperation is not only important for climate protection, but also contributes to job creation and economic development in Indonesia.

Education, culture and science

Cultural and scientific relations between the EU and Indonesia have also grown strongly. Education is an important area of bilateral cooperation, as both sides recognise the importance of education and knowledge transfer in fostering innovation and economic growth.

The EU has launched various scholarship programs for Indonesian students, including the Erasmus+ program, which allows students to study at European universities and gain valuable international experience.

There are also numerous initiatives in the field of scientific cooperation. European and Indonesian research institutions collaborate in various fields, including climate research, biotechnology, health and agricultural sciences. This collaboration is supported by EU research programmes such as Horizon 2020, which aim to foster scientific innovation and address global challenges through joint research efforts.

Cultural relations between the EU and Indonesia are also diverse, including exchanges of artists, cooperation on cultural events and the promotion of cultural diversity. European countries have established cultural centers in Indonesia to promote exchange and mutual understanding. On the other hand, Indonesian cultural events are also very popular in Europe and contribute to the promotion of cultural understanding.

Struggle for values

Despite the intensive cooperation, the EU and Indonesia also face various challenges that may affect their relations. One of these challenges is dealing with different values and standards, especially in the areas of human rights and the environment. The EU attaches great importance to compliance with international human rights and environmental standards, while Indonesia sometimes struggles to fully implement these standards, especially given the complex social and economic conditions in the country.

The EU attaches importance to compliance with international human rights standards and environmental regulations, while Indonesia is struggling to fully implement these standards, especially given the complex social and economic conditions in the country.

Another problem is the increasing geopolitical competition in the region, especially due to the growing influence of China. Indonesia is in a strategic position in the Indo-Pacific and needs to find a balance between the interests of the various major powers. The EU is seeking to strengthen its role in the region in order to counterbalance other global actors, but this requires careful diplomatic efforts and enhanced cooperation with regional partners such as Indonesia.

Despite these challenges, modern relations between the EU and Indonesia offer numerous opportunities for further deepening cooperation. Both sides recognize the importance of their partnership in addressing global challenges and are committed to further developing these relationships in the future.

In the coming years, cooperation between the EU and Indonesia could be further intensified in new areas such as the digital economy, artificial intelligence (AI) and cybersecurity. The EU has a strong interest in promoting its technological capabilities and standards globally, while Indonesia is looking for ways to strengthen its digital infrastructure and innovation capacity. Increased cooperation in these areas could not only contribute to economic development, but also to bridging the digital divide and increasing the competitiveness of both regions.

In addition, cooperation in the field of sustainable development and climate protection is expected to become increasingly important. The challenges of climate change require global solutions, and the EU-Indonesia partnership could play a key role in the development and implementation of such solutions. The promotion of renewable energies, the protection of biodiversity and the creation of sustainable economic systems are areas in which both sides can make important progress together.

One thing is clear: modern relations between the EU and Indonesia are on a solid foundation. They could be further expanded in the coming years. Both sides have a common interest in peace, stability and prosperity, and by working together in various fields such as business, politics, science and culture, they can achieve these goals together. At the same time, the challenges they face provide an opportunity to strengthen their partnership and develop innovative solutions to the global problems of the future.

About the author
I Ketut Ardhana
Professor and Lecturer in Asian History

I Ketut Ardhana is Professor and Lecturer in Asian History at the Faculty of Humanities, Udayana University in Bali, Indonesia. He is the chairman of the Widya Kerthi Education Foundation at Universitas Hindu Indonesia (UNHI) in Denpasar, Bali and patron of the International Journal of Interreligious and Intercultural Studies (IJIIS). Ardhana completed his Doctoral Program in Southeast Asian Studies at the University of Passau.

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