Indonesia, Switzerland to Ratify Bilateral Investment Treaty This Year

Jakarta.

Foreign Minister Retno Marsudi on Wednesday met her Swiss counterpart Ignazio Cassis to pursue a speedy process in the ratification of a bilateral investment pact as soon as this year.

Background

1. After seven rounds of negotiations since 2018, Indonesia and Switzerland last year inked a bilateral investment treaty set to better protect Swiss businesses when investing in Indonesia and vice versa.

Importance of Ratification

• In a joint press conference after her meeting with Cassis, Retno said that Switzerland was Indonesia’s second-largest European investor in 2021.
• “To further boost investment partnership, I underlined the importance of ensuring the bilateral investment treaty can be ratified within this year. This treaty will provide legal protection and business certainty for our investors,” Retno told reporters.

Collaboration on Nusantara Development

• As expected, Retno tried to get Swiss investors into Indonesia’s new capital city Nusantara whose funding mostly was set to come from the private sector.
• “We would like to collaborate with Switzerland in the development of Indonesia’s new capital, Nusantara, especially in areas such as hospitality industries and higher education,” she said.

Swiss Companies in Indonesia

• According to Cassis, there are over 150 Swiss companies currently operating in Indonesia. Switzerland also wants to see the bilateral investment treaty enter into force by the end of the year.
• According to the Indonesian government data, Switzerland became the 17th largest foreign investor out of 130 countries in Jan-June 2023. Foreign direct investment from Switzerland over the period totaled $95.2 million. Switzerland also invested in 427 projects in the first six months of this year.

Trade and Investment Figures

• In 2021, Indonesia attracted $599.8 million in FDI from Switzerland. These investments went to 281 projects.
• Indonesia-Switzerland trade went up from almost $2 billion in 2021 to $2.8 billion the following year. Bilateral trade already totaled $1.5 billion in the first five months of 2023, the government reported.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 17: Partnerships for the Goals

The article discusses the bilateral investment treaty between Indonesia and Switzerland, which aims to boost investment partnership and provide legal protection and business certainty for investors. This aligns with SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. It also relates to SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. Additionally, the article mentions the importance of collaboration and partnerships between Indonesia and Switzerland, highlighting SDG 17, which emphasizes the need for global partnerships to achieve the SDGs.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries.
• Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being.
• Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.

The article mentions the importance of boosting investment partnership and economic growth between Indonesia and Switzerland. This aligns with Target 8.1, which aims to sustain per capita economic growth. Additionally, the article highlights the collaboration in developing Indonesia’s new capital city, Nusantara, which involves infrastructure development. This relates to Target 9.1, which focuses on developing sustainable and resilient infrastructure. Furthermore, the emphasis on bilateral investment and partnerships between the two countries supports Target 17.16, which aims to enhance global partnerships for sustainable development.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Foreign direct investment (FDI) from Switzerland
• Total investment projects
• Trade volume between Indonesia and Switzerland

The article mentions specific indicators that can be used to measure progress towards the identified targets. These indicators include foreign direct investment (FDI) from Switzerland, which reflects economic growth and investment partnership (Target 8.1). The total investment projects indicate the level of infrastructure development and investment activities (Target 9.1). Additionally, the trade volume between Indonesia and Switzerland reflects the strength of bilateral trade and partnerships (Target 17.16).

4. Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: jakartaglobe.id

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