On Sunday, July 13th, Ursula von der Leyen, President of the European Commission, announced that the European Union and Indonesia have reached a political agreement to advance the signing of the EU-Indonesia Free Trade Agreement.
The trade agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to create more opportunities for key industries such as agriculture and automotive.
During a joint press conference with Indonesian President Prabowo Subianto, von der Leyen stated, “There is enormous potential in our trade relationship, and the timing of this agreement is perfect as it will open up new markets for both sides.”
Subianto expressed, “Europe is very important to us. That’s why we want to see more European countries involved in our economy and more participation in our economy.”
Subianto arrived in Brussels over the weekend for talks aimed at ensuring Indonesian products receive tariff-free access within the framework of the Comprehensive Economic Partnership Agreement (CEPA). While the agreement is still being finalized, a key obstacle relates to trade in palm oil products, which conflicts with the EU’s anti-deforestation policy.
He mentioned, “This agreement will undoubtedly support our efforts in developing industries, creating jobs, and strengthening sustainable development goals. We are ready to finalize the agreement as soon as possible.”
“For Indonesia, CEPA is not only about trade but also about fairness, respect, and building a better future together,” he added. “In this turbulent and chaotic era, we are setting a positive example.”
Von der Leyen highlighted during the joint press conference, “Today, we have taken a significant step forward in this partnership.”
She emphasized, “We live in turbulent times where economic uncertainty meets geopolitical upheaval, and partners like us must come together even more closely.”