Jakarta — President Joko Widodo’s successor, Prabowo Subianto, announced a breakthrough in Indonesia’s decade-long trade talks with the European Union, confirming that both sides have agreed to enter into a Comprehensive Economic Partnership Agreement (CEPA), effectively a free trade pact.
“I was in Brussels, and there we achieved a major breakthrough. After 10 years of tough negotiations, Indonesia and the European Union have finally agreed to move forward with what’s called the CEPA—Comprehensive Economic Partnership Agreement—which is essentially a Free Trade Agreement,” Prabowo said at Halim Perdanakusuma Air Base on Wednesday (July 16).
Under the agreement, Indonesian goods will be able to enter the European market with zero tariffs.
According to Prabowo, the deal reflects a mutually beneficial relationship: while Europe needs Indonesia’s commodities and market access, Indonesia stands to benefit from European advancements in science, technology, and capital investment.
“Our products will enter Europe tariff-free. It’s a deeply symbiotic relationship—they have excellent technology, science, and financial resources, while we offer critical minerals, commodities, and a vibrant market,” he explained.
In addition to resolving all remaining issues in the CEPA negotiations that had stalled for a decade, Indonesia and the EU also agreed on a visa cascade system—a policy aimed at easing the process for Indonesian nationals to obtain multiple-entry visas to the Schengen area.
