[{"bbox": [72, 107, 302, 139], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [86, 170, 220, 197], "category": "Section-header", "text": "### 2.1. Context"}, {"bbox": [83, 213, 1144, 293], "category": "Text", "text": "Indonesia is a crucial partner for the EU for the implementation of the SDGs, climate change and environment, as well as regional stability and regionalism. Its strategic relevance stems from its population and growing market size, unique biodiversity, as well as regional relevance."}, {"bbox": [83, 305, 1145, 465], "category": "Text", "text": "Indonesia is the world's **third largest democracy**, **fourth most populated country**, a **G20 member**, and a **heavyweight within ASEAN** (37% of population and GDP) - an EU strategic partner. Following the upgrade of EU-ASEAN relations to the level of strategic partners, strengthening the EU's relationship with Indonesia will contribute to reinforce EU's role and presence in the broader ASEAN region. Cooperation with Indonesia will be instrumental to the implementation of the **EU Strategy for Cooperation in the Indo-Pacific**, and its focus on responding to emerging regional dynamics, including in response to Chinese influence in the region."}, {"bbox": [83, 476, 1145, 637], "category": "Text", "text": "Indonesia is on the path to become one of the world's **top five largest economies by 2040**, but the **COVID-19 pandemic has slowed economic growth** and **increased inequalities** across the country-also resulting in Indonesia going back to lower-middle income status. Yet, its growing middle class, strong domestic demand, large and youthful population, fast rate of digitalisation, and need for new infrastructure make it an important potential market for trade and investment, which would be boosted through the **Comprehensive Economic Partnership Agreement (CEPA)** once completed and providing access for EU companies."}, {"bbox": [83, 648, 1145, 782], "category": "Text", "text": "Indonesia is home to one of the **largest rainforest, mangrove and peatland areas** in the world. However, Indonesia also has the third largest coal pipeline in the world and the government's National Recovery Programme does not support low-carbon options; instead, it bails out coal-heavy electric utilities. Indonesia's **climate vulnerability** and **greenhouse gas emissions** thus make it a **prime partner for EU climate policies and the external dimension of the European Green Deal**."}, {"bbox": [83, 793, 1145, 900], "category": "Text", "text": "To strengthen cooperation in this area, the **EU-Indonesia Joint Green Agenda** is being developed with line DGs (notably CLIMA, ENV and MARE) and with the Indonesian Government as a framework to give a new impetus to cooperation and exchange of know-how and experience in this area. For this reason, the Facility includes a specific component on \"Technical Assistance supporting the Green Agenda\"."}, {"bbox": [83, 912, 1145, 1045], "category": "Text", "text": "Indonesia is a **functioning democracy and has improved its track record on human rights**, with pluralism, fundamental freedoms, vibrant and diverse media and civil society, as well as independent institutions. Yet, Indonesia - the largest Muslim country in the world - has to cope with the erosion of tolerance and pluralism among its multi-ethnic and multi-religious population. Indonesia is a crossroad for migration within Southeast Asia, ensuring safe, regular and orderly migration remains a challenge."}, {"bbox": [83, 1057, 1145, 1138], "category": "Text", "text": "Indonesia has shown **strong commitment to implementing the SDGs**, which are mainstreamed in its Medium-term National Development Plan (RPJMN) 2020-2024. The Cooperation Facility is aligned with the priorities of the RPJMN, such as increasing Indonesia's competitiveness through policy cooperation."}, {"bbox": [83, 1149, 1145, 1230], "category": "Text", "text": "EU-Indonesia relations are based on the **Partnership and Cooperation Agreement** (in force since 2014 and the first with an ASEAN country), which serves as a platform for dialogue on Political Affairs, Trade, Security, Human Rights, Environment/Climate Change, and Development."}, {"bbox": [83, 1241, 1145, 1349], "category": "Text", "text": "This context is reflected in the priority areas for cooperation with Indonesia, which have been identified as **trade, investment and connectivity, green inclusive development**, and **good governance** (including anti-corruption and rule of law), **human rights and security** (in particular preventing and countering violent extremism in the country assessment and Multi-Annual Indicative Programme)."}, {"bbox": [83, 1360, 1145, 1414], "category": "Text", "text": "These political objectives are also strongly **linked to our ASEAN interests and cooperation**. This Facility and the funding from the regional instruments, under the framework regional TEIs, will be mutually reinforcing."}, {"bbox": [86, 1445, 325, 1475], "category": "Section-header", "text": "### 2.2. Problem Analysis"}, {"bbox": [83, 1489, 302, 1515], "category": "Text", "text": "Short problem analysis:"}, {"bbox": [83, 1527, 1145, 1608], "category": "Text", "text": "While Indonesia has made progress in governance and issues of gender equality, **corruption** remains a challenge, there is a **risk of democratic backsliding in some areas, women are affected by discriminatory laws and justice (including by-laws and customary justice), and still lack opportunities to participate in the economy and politics.**"}, {"bbox": [1144, 1663, 1158, 1684], "category": "Page-footer", "text": "5"}]