Indonesia and the European Union have finally reached a political agreement to finalize the Comprehensive Economic Partnership Agreement (CEPA) after a decade of negotiations. This agreement paves the way for Indonesian products to enter the European market more freely. President of Indonesia, Prabowo Subianto, referred to this agreement as a significant breakthrough amid global uncertainties. The negotiations successfully unified the different economic interests of both sides and found that cooperation was mutually beneficial. Ursula von der Leyen expressed appreciation for Prabowo’s leadership in concluding this agreement, emphasizing CEPA as an ambitious and timely free trade agreement given the economic potential of both parties.
Indonesia plays a crucial role in the global supply chain, especially in the context of the clean energy and digital transition underway in the European Union. CEPA will broaden market access for agricultural products, automotive products, services, and essential raw materials from Indonesia to the European Union. With a combined market of 730 million people between Indonesia and the European Union, the implementation of CEPA is expected to be a game-changer in the trade relations of both regions. Prabowo hopes that the implementation of this agreement can be re-signed in Brussels soon as a symbol of long-term commitment from both parties.
