NEWS STORIES Speech by EU Ambassador Vincent Guérend at the TCF Seminar "The Future of Geographical Indications in Indonesia" Speech by H.E. Vincent Guérend, Ambassador of the European Union to Indonesia and Brunei Darussalam, at the TCF Seminar "The Future of Geographical Indications in Indonesia" Speech by H.E. Vincent Guérend Ambassador of the European Union to Indonesia and Brunei Darussalam at the TCF Seminar "The Future of Geographical Indications in Indonesia" Jakarta, 29 August 2016 Your Excellency, Minister of Law and Human Rights, Mr Yasonna Laoly, Ladies and Gentlemen, It gives me great pleasure to welcome you to this seminar on the Future of Geographical Indications in Indonesia. Today s event is part of the EU-funded Trade Cooperation Facility (TCF) Project.
Today's seminar is the fruit of an already well-established co-operation between the EU and Indonesia on the protection of Geographical Indications, notably through the TCF action. The importance of GIs As you will certainly already know, Geographical Indications (GIs) are names and other designations used on goods which have a specific geographical origin and possess qualities or a reputation that are due to that place of origin. They are a unique asset for our producers in an increasingly liberalised world. There are currently around 3,300 GIs registered in the EU. A majority of these represent economic opportunities in rural areas, leading to more rural jobs, and stronger rural communities. In spite of the fact that the GI protection legal framework is relatively new in Indonesia compared to the EU, both the EU and Indonesia share a rich tradition and history in local and specialised agricultural production. In Europe, as in Indonesia, we retain a strong pride in the fact that behind names of products are often centuries of respected culinary practices, agrarian and artisan traditions, and local expertise. So why are GIs so important for EU and Indonesian producers? GIs embody the philosophy of caring about origin: in a globalised world, it is great to have food and drink that is different because of its origin; GIs are the opposite of a standardised restaurant chain meal which tastes the same all over the world, made to a standard recipe.
GIs protect diversity: in a globalised world homogenised by multinational brands, television and travel, consumers long for products with a difference. Buying a product with a GI ensures this. In short - the more GIs - the more diversity in the supermarket! GIs are transparent: they let you know what's in your food! Protecting a name for the "genuine" food from a region requires having a recipe, and publishing it. For a GI cheese for instance, you can check what animal breeds can be used for getting its milk. Very important for producers, the income-generating potential of a well-regulated and well-promoted GI system is undeniable. According to a recent EU study, on average, the price obtained by the farmer or local producer for a famous traditional product is over twice (2.23 times to be exact) the price received for a comparable nonlocal product. GI protection means that a given name can only be used for products made in a specific place. If you delocalise production or move out of that specific area, you lose the right to use the name. In times of worry about delocalisation of manufacturing jobs, GI protection ensures that jobs stay put. Trademarked production can be moved anywhere in the world. GI production cannot. Olive oil with the GI "Tuscany" is not only "designed" in Tuscany, but comes from olives grown on trees in Tuscany. It would also be the case for Muntok pepper, or Gayo Coffee. It has been shown that this can ensure that the jobs stay where they are, and production does not move to the place where it is cheapest. Today I wish to tell you that what works for us can also work for you. With an increasing interest in local food, local markets and agri-tourism, the Indonesian public will be receptive to these ideas. Our experience in Europe is that a well-implemented GI policy can have a profound impact on consumer choices, because quite simply people like buying high-quality traceable food for their families. There is no reason why it would not be the same in Indonesia and very importantly as regards Indonesian products exported abroad! But I would like to remind all here today that the numerous GI success stories did not happen by chance. While many of these products and their production techniques are
ancient, the regulatory regime which has allowed them to flourish as world-famous GIs is modern and dynamic. In the EU, our GI products are well protected in our territory, but the reputation of GI products encouraged bad faith operators to use this reputation to get higher prices from consumers without selling genuine products. Not only is it directly damaging for genuine products which cannot be sold on these markets, but it also deteriorates their image and reputations - as products sold using the GI names do not offer the same quality. For this reason, you will understand that it is essential today to not only protect EU GIs but also Indonesian GIs in foreign markets as soon as possible, and in any case before others make use of the GI reputation, by using names or registering trade marks in bad faith. During the past decade, interest in an enhanced protection of Geographical Indications has increased worldwide, and in Asia in particular. Geographical Indications are now developing fast representing an important instrument for trade, rural development, protection of know-how and tradition as well as products promotion and tourism. In our bilateral Free Trade Agreements (FTAs), including the ones we have concluded with some of our ASEAN partners such as Singapore and Vietnam, GIs are now an integral part of our agreements. EU support to GIs in Indonesia and the development of GI policy Let me now turn to the topics of today's seminar, which are more related to the specific situation in Indonesia, and how the EU has assisted Indonesian GI producers to promote and develop their products, as well as advising on best practices for all stakeholders, be it government or private sector. Since 2012, the EU decided to include actions related to GI protection in the TCF programme. Among these actions, I would quote a few but there were many others. First of all, the GI strategy document to be presented and discussed today charts out
the future for GIs in Indonesia, and how the government in collaboration with the private sector could work to further improve the GI system, promote awareness about GIs among producers and economic operators, make GIs accepted in the domestic markets, as well as how to promote the internationalisation of Indonesian GIs including on the large and growing EU market. Secondly, the EU has provided technical support to one pilot application for an Indonesian GI registration in the EU (Gayo Coffee). The application was submitted in early 2016. It will now follow the EU procedure until it is hopefully approved and obtains it protection. Furthermore, I understand that the TCF project has worked closely with farmers and producers on the ground. For example on the Sumbawa Honey GI, the TCF was able to co-operate with the Hutan Lestari Cooperative, based in Batu Dulang village in Sumbawa. The honey farmers based in the village told the project that their incomes had increased 5 times since the GI started to work effectively; and they were proud of their commitment to conservation, describing the way they and the GI Association together support the welfare of injured farmers, and contribute to the education costs of children from the village. The potential to develop GIs in Indonesia is significant as your country is so vast and diverse in terms of agricultural production. However, the GI policy framework and system must be well developed and inclusive of farmers and producers. Thanks to the awareness raising activities, farmers and producers will be keen to ensure quality and traceability, and the effective marketing and selling of their products, as their products can fetch higher premiums. With these thoughts, we come to the heart of the proposed GI strategy how stakeholders, working together, can ensure an inclusive bottom up approach that would be the essence of a successful GI strategy; how at the national and local levels, government agencies should co-ordinate effectively to push forward with the quality and effectiveness that is needed in the involvement of producers and farmers at the specific GI level; and with the products themselves, using good production techniques, market intelligence, attractive packaging, effective selling, and protection.
These are indeed key challenges, but surely they are challenges that must be overcome if the potential economic and social value of GIs in Indonesia is to be realised. It would be great if Indonesian GIs can grow to become as significant as the best in Europe, many of which have global significance. Here I am thinking of popular examples such as Champagne, Parma ham, Feta cheese, each with its own specific consumer and producer connotation. One recommendation in the strategy paper proposes the creation of a dedicated group of Indonesian experts who know the GI system and how to nurture it; and who are dedicated to the bottom up approach involving awareness-raising to secure maximum membership of individual GIs, ensuring traceability, building quality and markets and marketing. The suggestion is that this group can best work in a close relationship with the government strategies, and financially supported by the government. This is what TCF has been doing through its experts on a relatively small scale; now is the time for the Indonesian government and the GIs to take up this approach and apply it on a larger scale over the coming years. I am proud of what we have been able to contribute to the GIs from our experience in Europe and I am impressed with what DG IPR has been able to do to get the GI system to this stage. Now the scene is set for a more concerted action at the central government and local levels. The current Government have set some impressive targets for Indonesian exports, notably including in the agriculture sector, and certainly implementing a credible and robust GI strategy must be part of such a wider ambition. Future perspectives Given that the EU would also be interested to protect its GIs in Indonesia, we have held exploratory talks with the Indonesian authorities on GIs and which so far were quite conclusive, as many of the EU and Indonesian objectives (i.e. high level of protection) were shared. Now that we have launched the Comprehensive Economic Partnership Agreement
(CEPA)/FTA negotiations, EU and Indonesia should discuss further how we can jointly deepen our co-operation on GIs and best ensure their protection in our respective markets. I am confident that during this event, the attending GI stake-holders will have a fruitful exchange of views on the future strategy for GIs in Indonesia. In conclusion I can only encourage the Indonesian authorities to continue their efforts to promote GIs at national and international levels in the interests of the producers. My advice, in order to make your GI strategy a success, is to ensure that producers, many of whom are represented here today, should be convinced of their own interest and also play an active role in the GI strategy. GIs success stories in Indonesia and abroad should pave the way for other producers to also join the lucrative GI market. Terima kasih (Thank you). www.eeas.europa.eu Source URL: http://eueuropaeeas.fpfis.slb.ec.europa.eu:8084/taxonomy/term/2087/8993/speech-eu-ambassador-vincent-gueren d-tcf-seminar-future-geographical-indications-indonesia_ko