Jakarta, Indonesia Sentinel — Indonesia and the European Union have reached a landmark trade agreement under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). The move was a major step toward establishing a free trade zone between the Indonesia and the European Union (EU).
The deal was announced by Indonesian President Prabowo Subianto following his meeting with European Commission President Ursula von der Leyen in Brussels, Belgium, on Sunday (July 13, 2025).
“We now have a comprehensive economic partnership agreement between Indonesia and the European Union, which essentially functions as a free trade agreement,” Prabowo said, as quoted by state news agency Antara.
Prabowo described the political agreement as a breakthrough moment, marking a significant milestone after 10 years of negotiations. “This is extraordinary, a major breakthrough. After a decade of talks, we’ve finally succeeded. All major issues have been resolved,” he stated.
Under the agreement, both parties have committed to accommodating each other’s economic interests. “We’ve found common ground that benefits both sides,” Prabowo added.
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One of the most significant outcomes of the IEU-CEPA is the near-complete elimination of tariffs on goods traded between Indonesia and the EU. “We’ve finalized almost all tariffs, most of them will now be zero percent. This is truly a breakthrough,” Prabowo emphasized.
He hailed the agreement as a strategic partnership that opens enormous market access for Indonesia. “The European Union is a massive market, home to over 460 million people. Its total GDP and trade volume are among the largest in the world,” he noted.
Prabowo also highlighted the deal’s importance amid rising global uncertainty, saying it offers Indonesia a strong alternative trade partner. “This is a historic achievement. In a world full of uncertainty, we now have a powerful alternative,” he said.
The IEU-CEPA is slated to be formally signed in September 2025, with the finalization to be carried out by EU Commissioner for Trade and Economic Security Maroš Šefčovič and Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto.
(Raidi/Agung)
