Brussels, July 14, 2025 — After a decade-long negotiation process, Indonesia and the European Union have officially reached a political agreement to conclude the Comprehensive Economic Partnership Agreement (CEPA). This agreement paves the way for broader market access for Indonesian products across Europe.
At a joint press conference with European Commission President Ursula von der Leyen in Brussels on Sunday (July 13), Indonesian President Prabowo Subianto hailed the breakthrough as a critical and strategic achievement amid global uncertainty.
“Today, I am pleased to announce that we have reached a significant breakthrough. After ten years of negotiations, we have finalized an agreement towards a Comprehensive Economic Partnership Agreement, which is essentially a free trade agreement,” said Prabowo.
He emphasized that both sides had successfully reconciled previously differing economic interests and discovered that cooperation proved mutually beneficial.
“We have made significant progress and agreed to accommodate each other’s economic priorities. We found that our interests are complementary and mutually advantageous.”
President von der Leyen expressed appreciation for Prabowo’s leadership in bringing the negotiations to a close. She described CEPA as an ambitious and timely free trade agreement, noting the vast economic potential of both partners.
“I am pleased to announce that we have just reached a political agreement on an ambitious free trade agreement — the CEPA. After 10 years of negotiations, we have achieved a major breakthrough. Mr. President, I thank you for your leadership,” von der Leyen stated.
She also underlined Indonesia’s strategic role in global supply chains, particularly in supporting the EU’s clean energy and digital transitions.
“Indonesia is a key supplier of essential goods for the green and digital transitions, and it has a rapidly growing market with over 287 million people.”
CEPA will provide broader market access for Indonesian products in sectors such as agriculture, automotive, services, and critical raw materials. Von der Leyen stressed that the EU seeks not only secure supply chains but also socially and environmentally responsible ones.
“This agreement will open new markets, create more opportunities in key sectors such as agriculture, automotive, services, and more. It will strengthen supply chains for critical raw materials needed in the energy and digital transitions.”
“More importantly, we want not just secure but responsible sourcing — that means respecting the environment, local communities, and focusing strongly on decent job creation and local value-added.”
With a combined market of 730 million people between Indonesia and the EU, the implementation of CEPA is seen as a potential game changer in the two regions’ trade relations.
“Indonesia is one of the world’s largest economies, with a GDP of €1.2 trillion. Together, we represent a market of 730 million people,” von der Leyen said.
Prabowo concluded with hopes that the implementation signing of the CEPA could take place once more in Brussels, as a symbol of long-term commitment between the two partners.
“I truly hope that when we begin implementing this agreement, we can sign it here in Brussels again. That would give me the opportunity to visit Brussels once more!” Prabowo said with a smile.
