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Indonesia thinks that needs a FTA with the EU, because if finally Indonesia don’t sign this Agreement and others, like most members of ASEAN are doing, Indonesia’s competitiveness will decrease. For example, Malaysia has gone of before Indonesia with its FTA with India, neighboring country.

The EU is the largest investor in Asean, the Asean’s third largest trade partner after China and Japan.

The EU (mainly Germany) and Indonesia want commence FTA negotiations after the EU in 2009 decided to pursue free trade negotiations directly with individual Asean members (Singapore, and currently in discussion with Malaysia, Vietnam, and Thailand)  instead of the ASEAN block. 

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