THE Fiji Commerce and Employers Federation (FCEF) in collaboration with the Indonesian Embassy in Suva this week hosted an interactive initial discussion on exploring possible ways for Fiji and other countries in the Melanesian
Spearhead Group (MSG) sub-regional bloc to increase economic cooperation with Indonesia.Representatives from Fiji’s Foreign Affairs, Finance and Trade Ministries joined participants from Fiji’s private sectors, Investment Fiji and the MSG secretariat to deliberate on the findings of a research analysis paper which looks into possible economic and development arrangement that enables economic integration between MSG countries.
The Talanoa session coincides with the 23rd MSG Leaders’ Summit that begins in Suva on Monday.
Speaking at the event, Ambassador of the Indonesia to Fiji Dupito Simamora impressed upon the importance of the informal dialogue.
“Fiji is to receive the baton of MSG chairmanship from Vanuatu next Monday, it is thus crucial to discuss what we can do together as a sub-region of the Blue Pacific Continent to ensure the well-being of the people, develop people-centered development, to deepen regionalism and solidarity, and to accelerate economic growth,” Mr Simamora said.
“2050 Strategy also calls for a well-connected region and as such also for the Pacific region with other regions.
“It is in this spirit this Talanoa is key to provide ideas on how to strengthen the MSG as the foundation and building block for Pacific regionalism by engaging other partners like Indonesia.
“As an associate member of the MSG, it is incumbent for Indonesia to play a bigger role in the sub-region of Melanesia to meet the priorities as decided by Leaders in 2023 and the communique to be adopted by Leaders next Monday.”
A study conducted last year by Amit Prakash of The University of Fiji and a group of Fijian and Indonesian scholars determined that increased support from large non-traditional development partners may play a critical role in solidifying several free trade cooperation agreements already formed over the past 30 years between Pacific Island countries and their traditional donors.
Also present at the Talanoa session to present the main findings of the study, Mr Prakash said given Fiji’s strategic location as a gateway for economic activities in a number of Pacific Island countries, an enhanced economic cooperation between Fiji and Indonesia can bring positive spill-over effects in the form of increased market transactions to the region’s larger economies within the Melanesian sub-region.
Fiji’s Permanent Secretary for Civil Service and Public Enterprises and former ambassador to Indonesia Amena Yauvoli, also participated in the Talanoa session and pointed out that the relaxation of entry-visa barrier and the provision of non-reciprocal tariff preferences by Indonesia are amongst the initiatives will open up opportunities for Indonesia to increase its economic participation with Fiji and the MSG.
Another seasoned Fijian diplomat and former MSG Secretariat executive Peni Sikivou, now senior Government Advisor at Fiji’s Ministry of Finance, said a potential way forward to enhancing goods, services, and investment trade with Indonesia was to include Indonesia in an expanded arrangement of the MSG Trade Agreement – or MSGTA Plus.
Acting director-general of the MSG Ilan Kiloe said Indonesia as an MSG associate member and a close regional partner, brought significant experience, capacity and market access that can complement and strengthen economic ammunitions in the MSG.
Note: This article was first published on the print version of the Fiji Times dated June 21, 2025
