EU and Indonesia Seal Landmark Trade Deal After a Decade of Talks

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BRUSSELS, Investortrust.id – The European Union and Indonesia have concluded negotiations on a long-awaited Comprehensive Economic Partnership Agreement (CEPA), marking a milestone in bilateral relations after more than ten years of talks.

President Prabowo Subianto of Indonesia and European Commission President Ursula von der Leyen jointly announced the deal in Brussels on Sunday, July 13, 2025, pledging to deepen economic ties, enhance strategic cooperation, and promote a sustainable development agenda between the world’s largest trading bloc and Southeast Asia’s biggest economy.

“This agreement will bring great opportunities to both our people,” said von der Leyen. “We are sending a strong message about the importance of predictable, long-term partnerships—built on trust, transparency, and shared values.”

Prabowo praised the breakthrough as a “mutually symbiotic” partnership and voiced Indonesia’s desire for greater European engagement. “We still look toward Europe. Maybe not many of us would like to admit it openly, but I do. We want to work with a stronger Europe,” he said.

New Trade Era

Formally known as CEPA, the agreement is designed to open markets and boost two-way trade in goods and services. It includes provisions to expand investment opportunities and strengthen cooperation in digital trade, public procurement, and intellectual property.

Von der Leyen highlighted the significance of Indonesia’s $1.3 trillion economy and a domestic market of more than 287 million people—making it the largest in the Association of Southeast Asian Nations (ASEAN). Despite this, Indonesia currently ranks only fifth among ASEAN trading partners for the EU, pointing to untapped potential.

“The new agreement will open new markets and create more opportunities in key sectors,” she said. “Businesses active in agriculture, automotive, and services will massively benefit.”

She added that the agreement also aims to secure and diversify supply chains for critical raw materials, which are vital to the EU’s twin transition toward a green and digital economy.

“We want not only a secure supply—but a responsible one,” von der Leyen said. “That means respect for the environment, for local communities, and a clear focus on good jobs and local value creation. This is the European way of doing business.”

Toward a Strategic Partnership

In addition to the trade pact, both leaders agreed to explore elevating the relationship to a Strategic Partnership—a designation that would expand bilateral cooperation in foreign policy, security, maritime affairs, and global governance.

“In times of economic uncertainty and geopolitical volatility, partners like us must come closer together,” said von der Leyen.

Prabowo affirmed Indonesia’s alignment with Europe’s values and role in global stability. “We consider Europe to be very important in providing global stability. Europe is still, in our opinion, a leader in many aspects of modern life—science, technology, human rights, and democracy,” he said.

Smoother Travel and People-to-People Ties

The European Commission also announced a new visa initiative aimed at deepening connections between citizens of both regions.

Under the visa cascade mechanism, Indonesian nationals visiting the EU for a second time will now be eligible for multi-entry Schengen visas, making it easier to return for business, investment, education, or tourism.

“In short, we are building a bridge between our societies,” said von der Leyen. “Our people should be the first to benefit from this strengthened partnership.”

United in Diversity

Both leaders repeatedly emphasized the shared democratic principles and cultural pluralism of their regions. Prabowo acknowledged that Europe remains a beacon for many Indonesians. Von der Leyen noted the parallel between the EU’s motto, United in Diversity, and Indonesia’s national motto, Bhinneka Tunggal Ika, which translates to “Unity in Diversity.”

“The message we send today is powerful and clear,” said von der Leyen. “In hard times, some turn inward. Europe and Indonesia are choosing a different path—one of openness, partnership, and shared opportunities.”

Prabowo added, “In this era of instability and confusion, we are setting the right example.”

He closed with a lighthearted remark: “I hope we can sign the implementation agreement here in Brussels again. That gives me another chance to visit Brussels.”