Brussels: The European Union (EU) announced Sunday that it had reached a political agreement with Indonesia on a Comprehensive Economic Partnership Agreement (CEPA) following a meeting in Brussels between European Commission President Ursula von der Leyen and Indonesian President Prabowo Subianto.
According to Kuwait News Agency, the comprehensive agreement is expected to boost trade and investment, foster inclusive and sustainable growth, and enhance the resilience of supply chains. It will also support cooperation on critical raw materials, which are vital to the strategic interests and industrial competitiveness of both partners.
The joint press conference held at the EU headquarters in Brussels saw President von der Leyen emphasize the mutual benefits of the agreement, stating that it will open new markets and create more opportunities for businesses while strengthening supply chains essential for Europe's clean tech and steel industry. She highlighted the importance of partnership in times of economic uncertainty and geopolitical volatility. Indonesian President Prabowo Subianto underscored the significance of CEPA for Indonesia, viewing it as a means to ensure fairness, respect, and a robust future, while supporting industry growth, job creation, and sustainable development goals.
The statement from the EU also highlighted the agreement as a milestone in the EU-Indonesia partnership, rooted in open, rules-based cooperation. Both sides expressed their intention to deepen bilateral economic ties through this agreement.
Beyond trade, the leaders projected a shared vision to expand bilateral relations. The European Commission's adoption of a visa cascade decision aims to provide Indonesian nationals with easier access to multiple-entry visas, facilitating smoother exchanges.
Additionally, the EU and Indonesia reiterated their commitment to a rules-based international order and collaboration with the United Nations. They also emphasized support for peace initiatives in Ukraine and the Middle East, and strengthening the EU-ASEAN partnership to promote peace, prosperity, and sustainable development in the Indo-Pacific region.
This political agreement is a pivotal step towards finalizing CEPA by September 2025, with efforts led by EU Commissioner Maros Sefcovic and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto.