Following the setback inflicted by Australia on its Indo-Pacific strategy, the Quai d’Orsay decided to review its alliances in the area. France has thus committed itself to a “strengthened partnership” with Indonesia, the largest country in Southeast Asia, Foreign Minister Jean-Yves le Drian announced in Jakarta on Wednesday.
He therefore signed with his Indonesian counterpart Retno Marsudi “an action plan for the strengthening of this strategic partnership” dating from 2011, he said during a two-day visit. The relationship will be deepened “in defense and maritime affairs, in particular with the creation of a bilateral maritime dialogue” in 2022, but also in health, energy and climate change.
Towards arms purchases
Jean-Yves le Drian also met the Indonesian Minister of Defense, Prabowo Subianto on Tuesday, while Indonesia has been negotiating for several months for the acquisition of 36 Rafale. Jakarta is also interested in submarines, corvettes and other military equipment amid growing tensions between Beijing and the countries bordering the South China Sea.
France has seen its strategy in the region shaken by Australia’s termination of a contract to purchase French submarines and the announcement of a strategic alliance, called AUKUS, between this country, the United States. United and the United Kingdom. Since this disappointment, Paris wants to strengthen its alliance with its former partners, Japan and India, but also with Indonesia, Malaysia, Vietnam, South Korea, New Zealand and Asean.
It is also not a random moment to turn to Indonesia. The country will indeed see its diplomatic weight reinforced when it takes over the presidency of the G20 in December, while France is preparing in January to assume the presidency of the European Union in the first half of 2022.
The palm oil dispute
Indonesian President Joko Widodo also encouraged closer relations between the two countries during his meeting with Jean-Yves Le Drian. He called for an acceleration of negotiations for a free trade agreement between his country and the EU, but warned against “discriminatory” trade measures. “I support sustainable trade. But I dispute the fact that environmental issues are used as trade barriers, ”he said.
Since 2016, the EU and Indonesia have been negotiating a trade agreement which blocks in particular a dispute over palm oil, of which Indonesia is the leading exporter. Indonesia and Malaysia categorically oppose EU restrictions on the use of palm oil-based biofuels to tackle deforestation. The French minister’s visit nonetheless resulted in a letter of intent for funding of 500 million euros for the energy transition in Indonesia between the French Development Agency, the Indonesian electricity monopoly PLN and the government. .
