Indonesia’s garment and footwear manufacturers are hoping that the agreement with the European Free Trade Association (EFTA) will give them greater access to the European market. EFTA consists of Switzerland, Norway, Iceland and Liechtenstein. These countries are small in size and population but have high per capita incomes and exhibit strong fashion trends. So they are seen as holding great potential for Indonesian textile products through the four seasons of the year.

Indonesian textile products are currently subject to import tariffs between 11 and 30 per cent in these four countries. Reducing tariffs to zero per cent would make Indonesian goods more competitive. Indonesia is struggling to come out of a stubborn economic slowdown. Footwear and apparel are among Indonesia’s foremost export goods to the EFTA countries. Indonesian footwear exports to EFTA more than doubled in 2014, when they accounted for almost 18 per cent of total Indonesian exports to the four countries. Woven and knitted apparel contributed a further 20 per cent of Indonesian exports to EFTA countries.

Indonesia is seeking lower tariffs on processed agricultural goods from the EFTA countries this year. It is also seeking more investment from the four countries and transfer of technology and a greater involvement in the global value chain.