Inbizzy, Brussels – The EU and Indonesia have officially reached a political agreement to fast-track the long-pending Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in trade relations between the two economies. According to Reuters, The announcement was made by European Commission President Ursula von der Leyen during a joint press conference with Indonesian President Prabowo Subianto in Brussels on July 13, 2025.
“There is still untapped potential in our trade relationship. This agreement comes at the right time-it will open up new markets,” said von der Leyen.
Unlocking Trade Potential: Agriculture to Automotive
President von der Leyen highlighted that CEPA will bring new opportunities across key sectors, particularly agriculture and automotive industries. The agreement is expected to reduce tariff barriers, streamline trade in goods and services, and enhance economic cooperation between EU member states and Indonesia.
Prabowo: “Europe Is Vital to Indonesia”
Indonesian President Prabowo Subianto welcomed the political breakthrough, emphasizing Europe’s role as a strategic partner amid global uncertainty.
“We consider Europe very important to us. We want to see more European presence and participation in our economy,” said Prabowo.
“In this era of instability and confusion, I believe we are setting the right example.”
Strategic Step Amid Global Volatility
The political agreement is being hailed as a strategic advancement to strengthen both economic and geopolitical ties between the EU and Indonesia. Amid rising global trade tensions and regional rivalries, this cooperation signals a joint commitment to economic openness and stability.
Von der Leyen also acknowledged Indonesia’s growing importance within the Indo-Pacific strategy, although she refrained from referencing ongoing geopolitical frictions directly.
Nearly a Decade in the Making
The CEPA negotiations between the EU and Indonesia have been underway since 2016, facing delays over issues such as sustainability and labor rights. However, this latest political consensus sends a strong signal that a final trade deal may be on the horizon in the near future.
With this political agreement in place, both parties are optimistic that CEPA will lay the foundation for a mutually beneficial, inclusive, and sustainable economic partnership-positioning the EU and Indonesia for long-term growth.
