Indonesia and the European Union have recently reached a historic milestone by finalizing the Comprehensive Economic Partnership Agreement (CEPA) after a decade of negotiations. This agreement, announced by Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels, signifies a significant breakthrough in enhancing market access for Indonesian products in Europe. President Prabowo emphasized the mutual benefits of cooperation and the alignment of economic interests between both parties, highlighting the importance of this agreement amidst global uncertainties.
President von der Leyen commended Prabowo’s leadership in concluding the negotiations and described CEPA as an ambitious free trade agreement with immense economic potential for both Indonesia and the EU. She recognized Indonesia’s strategic role in supporting the EU’s clean energy and digital transitions, emphasizing the country’s critical position in global supply chains. The CEPA agreement is expected to expand market access for Indonesian products in various sectors, including agriculture, automotive, services, and critical raw materials, ensuring not only secure but socially and environmentally responsible supply chains.
With a total market of 730 million people between Indonesia and the EU, the implementation of CEPA is anticipated to significantly impact trade relations in both regions. President Prabowo expressed hope for the signing of the agreement to take place in Brussels, symbolizing a long-term commitment between the two partners. This landmark agreement sets the stage for increased economic cooperation and growth opportunities for Indonesia in the European market.
