Kadin Eyes Export Boost as Indonesia, EU Reach Breakthrough Trade Pact
Main Takeaways
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BRUSSELS, Investortrust.id — President Prabowo Subianto and European Commission President Ursula von der Leyen have concluded a landmark trade deal between Indonesia and the European Union, ending nearly ten years of negotiations on the Comprehensive Economic Partnership Agreement (CEPA).
Chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) Anindya Bakrie welcomed the deal, calling it a “breakthrough in international trade” that could significantly lift bilateral trade volumes.
In 2024, total trade between Indonesia and the EU reached €27.3 billion ($30.1 billion), consisting of €9.7 billion in EU exports to Indonesia and €17.5 billion in EU imports from Indonesia. With CEPA in place, those numbers are expected to rise substantially.
“This political agreement is a milestone for Indonesia-EU trade,” said Anindya Bakrie in Brussels, shortly after the agreement was announced.
He pointed to the EU-Vietnam CEPA as a promising precedent. Following its ratification, trade between the EU and Vietnam rose by 20%, from €56 billion to €67 billion. A similar trajectory is expected for Indonesia.
Strategic Sectors and Private Sector Collaboration
Kadin Indonesia plans to strengthen collaboration with Business Europe—the EU’s top business federation—to help companies on both sides seize new opportunities created by CEPA.
“I met with the CEO of Business Europe. We agreed to intensify cooperation so that businesses and entrepreneurs from both regions can maximize CEPA’s benefits,” said Anindya.
He noted that several key sectors would benefit from the agreement, including textiles, palm oil, and various strategic commodities sought by European countries.
The Kadin chairman emphasized the importance of diversification in a multipolar world, urging Indonesian companies to explore new markets and enhance their role in global value chains.
Shared Vision Amid Global Uncertainty
The deal arrives at a time of heightened geopolitical tension and economic fragmentation, prompting calls for deeper international cooperation.
“While some retreat into isolation and fragmentation, Europe and Indonesia have chosen a different path—one of openness, partnership, and shared opportunity,” von der Leyen said in a joint statement with President Prabowo.
She praised Prabowo’s leadership in finalizing the agreement, describing the CEPA as “an ambitious free trade agreement” and “a comprehensive economic partnership.”
“Today, we have taken a major step forward,” she added. “The message we send is strong and clear.”
The agreement is expected to pave the way for regulatory alignment, reduce tariffs, and improve market access for businesses on both sides, particularly in the face of shifting global supply chains.