In this month’s edition we decided to zoom in on economic relations between Switzerland and Indonesia, two countries that are both blessed with natural beauty. Although a quick look at the available data shows that trade and investment flows between both nations are quite small, we detected quite a lot of interesting activity in recent years that could – and should – lead to a boost in investment and trade between both countries.

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On Sunday 16 December 2018 Indonesia and the European Free Trade Association (EFTA), which consists of non-EU member countries Switzerland, Norway, Liechtenstein and Iceland, signed the Indonesia-EFTA Comprehensive Economic Partnership Agreement (CEPA). The signing ceremony, which was held in Indonesia’s capital city of Jakarta, effectively ends nearly eight years of negotiations between both sides.

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Indonesia's Industry Ministry is eager to intensify cooperation with Switzerland. On Tuesday (02/08) Indonesian Industry Minister Airlangga Hartanto stated that the European nation selected Indonesia as a key priority country in terms of economic cooperation and partnerships in the industry sector. Indonesia is ranked fourth in terms of priority investment destinations in Asia for Switzerland's foreign direct investment (FDI). Both nations have had positive diplomatic relations that date back to 1952.

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The governments of Indonesia and Switzerland encourage cooperation between Indonesian jewelry & ornament companies and Swiss watch makers. This commitment was reached during a meeting between Indonesian Industry Minister Airlangga Hartarto and Swiss Head of the Department of Economic Affairs, Education and Research Johann Schneider-Ammann, together with a Swiss watchmaker association delegacy. Watchmakers are in need of the supply of stones and precious metals. Indonesia can deliver these materials.

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