Switzerland-Indonesia: Cooperation in the four-year period 2021-2024

SECO will provide $65 million in grants to support Jakarta in becoming a more competitive, resilient and equitable economy

On February 25, 2021, Switzerland and Indonesia renewed their development cooperation, jointly launching SECO’s new Economic Development Cooperation Program with Indonesia 2021-2024.
The State Secretariat for Economic Affairs will provide $65 million in grants to support Indonesia in becoming a more competitive, resilient, and equitable economy.
Switzerland intends to support Indonesia on a more sustainable and inclusive development path.

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To this end, the new program focuses on two main priorities: promoting effective public institutions, particularly in urban areas, and strengthening the competitiveness of the private sector.
Particular attention will be given to small and medium-sized enterprises, as they are the main drivers of employment.
Swiss technical assistance will work in areas such as skills development, decent work, tourism, urban development, and sustainability, including commodity sectors such as palm oil.
Gender equality, climate change, and resource efficiency will be the cross-cutting themes that drive Swiss engagement. Over the four-year period, SECO will support the program with $65 million.

Conclusion of the Comprehensive Economic Partnership Agreement

Indonesia has been a priority country for Swiss development cooperation since the 1970s. Over time, the two countries have become close economic and political partners, and this year they celebrate 70 years of diplomatic relations.
These close relations have led, among other things, to the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the European Free Trade Association states and Indonesia, which will be submitted to a popular vote in Switzerland on March 7, 2021.

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CEPA will substantially improve market access conditions on both sides, deepen bilateral economic relations in a manner consistent with the goal of sustainable development, and further strengthen economic development cooperation.
The new cooperation program builds on the milestones of SECO’s previous cooperation programs and is closely aligned with Indonesia’s National Medium Term Development Plan 2020-2024 and the United Nations 2030 Agenda for Sustainable Development.
It focuses on high-quality technical assistance, particularly in areas where Switzerland has a proven track record and where Indonesian demand is high.
Commitment to a more sustainable Indonesian palm oil sector.

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While Indonesia’s palm oil sector is a major driver of exports and economic development, the rapid increase in production has led to high costs from a social and environmental perspective.
The Jakarta government recognizes the need to strengthen the environmental and social sustainability of palm oil production, in line with commitments made on the basis of CEPA.
Under the new cooperation program, SECO will continue to support these efforts.
Together with the United Nations Development Programme (UNDP), SECO is supporting the Indonesian government to take the lead in creating an environment in which palm oil is produced in a more sustainable and inclusive manner.

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A dialogue between all public and private stakeholders has resulted in a national action plan for sustainable palm oil production.
This action plan was signed and made into law by President Joko Widodo in 2019, demonstrating Indonesia’s commitment.
In addition, through the Sustainable Trade Initiative (IDH), SECO also promotes greater sustainability in palm oil supply chains.
The IDH is active in six provinces to promote sustainable economic development at the regional level. And this with a focus on sustainable production, forest conservation and social inclusion of indigenous peoples.
The direct beneficiaries are mainly small-scale oil palm farmers and their families, who receive training in better and more sustainable production methods.