Following the political agreement reached on 13 July by President von der Leyen and President Prabowo Subianto, the EU and Indonesia finalised negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA) on the 23rd of September 2025. On the EU side, negotiations were led by Commissioner for Trade and Economic Security Maroš Šefčovič. Currently in Indonesia, he is marking this historic milestone and engaging with both European and Indonesian businesses to support the upcoming ratification and next steps.
These comprehensive, forward-looking, and mutually beneficial agreements are a key milestone in delivering on the EU’s strategy of diversification and partnerships, strengthening trade and investment ties with a major economy, and creating new export opportunities and more secure supply chains for energy and raw materials.
European Commission President, Ursula von der Leyen, said: “We have made a commitment to double down on diversification and partnerships, to further support EU jobs and boost growth. Our deal with Indonesia creates new opportunities for businesses and farmers in a major and growing economy. This also provides us with a stable and predictable supply of critical raw materials, essential for Europe’s clean tech and steel industry.”
The CEPA will significantly benefit European farmers, bringing down tariffs on agri-food products and protecting traditional EU products, as well as key industrial sectors, such as the automotive, chemicals, and machinery sectors. In all, EU exporters will save some €600 million a year in duties paid on their goods entering the Indonesian market, and European products will be more affordable and available to Indonesian consumers.
The Chair of the International Trade Committee of the European Parliament, Bernd Lange (S&D, DE) said: “The EU and Indonesia are reliable trading partners that can provide economic stability in the current turbulent geopolitical situation. Therefore, I am happy that negotiations on a trade agreement were concluded today. Indonesia is an emerging economic power that is already the largest economy in the ASEAN countries and has a market of over 280 million consumers. The agreement improves market conditions on both sides and the investment potential for companies. Moreover, it is a prototype of the agreements that the EU stands for: developed jointly on an equal footing, for mutual benefit and based on rules. “
The standing rapporteur on Indonesia for the International Trade Committee, Iuliu Winkler (EPP, RO), commented: ”The signing of EU-Indonesia CEPA is great news for our bilateral relations, for the future of EU – ASEAN relations and, more generally, for the rules-based global trade. The agreement will open new markets, create new opportunities and enforce critical raw materials supply chains. It will create new jobs and enforce sustainable economic growth both in Europe and in Indonesia, bringing benefits to people and companies. As INTA Rapporteur, I stand determined to work hard on the ratification process of the CEPA in the European Parliament”.
For more information, please see the Press Releases of the European Commission and European Parliament.