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    Home » EU and Indonesia reach political agreement on trade partnership

    EU and Indonesia reach political agreement on trade partnership

    eub2eub213 July 2025Updated:14 July 2025 Trade
    — Filed under: EU News
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    The European Union and Indonesia have reached a political agreement on their Comprehensive Economic Partnership Agreement, marking a decisive milestone towards its conclusion.

    Meeting in Brussels, Commission president Ursula von der Leyen and President Prabowo Subianto of the Republic of Indonesia hailed the deal as an important moment.

    “The agreement will open new markets and create more opportunities for our businesses,” said Commission chief von der Leyen: “It will also help strengthen the supply chains of critical raw materials, essential for Europe’s clean tech and steel industry.”

    Indonesia’s president Prabowo Subianto said: “For Indonesia, CEPA is not only about trade, it is about fairness, respect, and building a strong future together. The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals.”

    They said the ‘mutually beneficial’ EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) will promote trade and investment, foster inclusive and sustainable growth, and enhance the resilience of supply chains. CEPA will support cooperation on critical raw materials, which are vital to both partners’ strategic interests and industrial competitiveness.

    Beyond trade, Ms von der Leyen and Mr Prabowo reaffirmed their shared vision for a broader bilateral partnership. To support people-to-people contacts between the EU and Indonesia, the Commission has adopted a visa cascade decision for Indonesia, ensuring a much quicker and easier access to multiple-entry visas.

    The sides stressed commitment to further advancing a clean energy transition. Indonesia emphasised that its national approach is anchored in the vision of energy self-sufficiency and resilience, as outlined in the Asta Cita.

    Both leaders underscored their support for a rules-based international order, closer UN cooperation, and peace efforts in Ukraine and the Middle East. Europe and Indonesia remain dedicated to strengthen ASEAN and EU partnership, as both sides actively support peace, prosperity and sustainable development in the Indo-Pacific.

    Finally, they agreed that the growing ties between Indonesia and the EU, grounded in shared values of democracy, human rights, and the rule of law, should lay the foundation for a stronger, more strategic partnership in the future.

    EU-Indonesia Free Trade Agreement

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