Historic IPEF Ministerial Meeting Marks New Era in Clean and Fair Economy

Singapore, INTI – Fourteen ministers from Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries convened at the Sands Expo & Convention Centre on Thursday (6/06). Coordinating Minister for Economic Affairs Airlangga Hartarto, along with his counterparts, successfully signed the IPEF agreements for the Clean Economy Pillar, Fair Economy Pillar, and the Overarching Institutional Agreement. This milestone marks a historic breakthrough in fostering collective prosperity through clean and fair economic cooperation among Indo-Pacific nations.

The Clean Economy Pillar (Pillar III) is a key component of the IPEF agreement, aimed at promoting a global economy that is environmentally responsible and sustainable. Under this pillar, IPEF member countries commit to enhancing eco-friendly economic activities by sharing information and best practices. They will explore each country's potential for participating in green economic practices and open up extensive investment opportunities for private entities interested in green business initiatives.

Notable initiatives under Pillar III include the Cooperative Work Program (CWP) and the Clean Economy Investor Forum (CEIF). These initiatives feature the IPEF Catalytic Capital Fund, which will provide up to USD 3.3 billion in funding for high-quality climate infrastructure projects.

To ensure effective implementation of commitments under the Fair Economy Pillar (Pillar IV), IPEF partners welcomed the announcement of the Capacity Building and Technical Assistance (TACB) program, facilitated through the TACB Initiative Catalog. These programs are designed to bolster efforts to prevent and combat corruption, money laundering, and terrorist financing while enhancing transparency and tax information exchange.

The TACB Initiative Catalog will offer various opportunities for IPEF partners to develop effective anti-corruption policies and tax administration systems. This includes training government officials in investigating and prosecuting corruption cases and workshops to improve integrity and online reporting systems. Indonesia anticipates more offerings from IPEF partners related to TACB to help achieve the high commitments of Pillar IV.

Indonesia and its partner countries will take strategic steps, including domestic consultations and the ratification process for the IPEF agreements on Pillars III and IV, which will enter into force on June 7, 2024. IPEF member countries remain committed to collaborating on clean and fair economies within the broader IPEF framework.

Accompanying Minister Airlangga at the meeting were Indonesian Ambassador to Singapore Suryopratomo, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto, Special Staff for Regional Development Acceleration, Infrastructure Development, and Investment Wahyu Utomo, Deputy Assistant for Multilateral Economic Cooperation Ferry Ardiyanto, Deputy Assistant for American and Pacific Economic Cooperation Irwan Sinaga, and Deputy Assistant for Asian Economic Cooperation Bobby C. Siagian.