President Prabowo Highlights Strategic Role of Indonesia-EU Agreement in Global Economy and Stability
Jakarta, The Gulf Observer: President Prabowo Subianto has emphasized the strategic importance of the partnership between Indonesia and the European Union (EU), describing it as a vital force for supporting global economic growth and geopolitical stability. His remarks came during a state visit to Belgium, where he met with European Commission President Ursula von der Leyen at the EU’s Berlaymont Building Headquarters in Brussels on Sunday, July 13 (local time).
“Europe is a leader in science, technology, and finance, while Indonesia possesses significant natural and human resources. A strong partnership between Europe and Indonesia, which is also part of ASEAN, can bring meaningful contributions to the global economy and stability,” President Prabowo stated in an official release on Monday.
In parallel with the presidential meeting, Coordinating Minister for Economic Affairs Airlangga Hartarto held a bilateral discussion with European Union Commissioner for Trade and Economic Security Maroš Šefčovič. The two sides reached agreement on several key points as part of a concrete follow-up to advance the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations.
“Indonesia welcomes this political agreement as a major milestone towards completing the IEU-CEPA by September 2025,” said Minister Hartarto. “This progress reflects the strategic value of both parties in building a long-term, forward-looking economic partnership.”
Since the launch of negotiations in July 2016, there have been 19 rounds of formal negotiations and numerous intersessional discussions, resulting in substantial progress on various critical components of the agreement.
Both sides acknowledged the significant potential for expanding trade and investment, particularly through enhanced market access, removal of trade barriers, and establishment of a more inclusive and predictable business environment.
To facilitate the final stages of the agreement, Hartarto and Šefčovič signed an exchange letter, which will serve as a framework to accelerate the finalization of the IEU-CEPA. Commissioner Šefčovič hailed the breakthrough as a reaffirmation of both parties’ commitment to a comprehensive, mutually beneficial agreement.
“We are opening vast new opportunities for businesses, especially small and medium-sized enterprises, in both Indonesia and the European Union,” he stated.
The IEU-CEPA aims to expand business opportunities, enhance legal certainty, and provide a strategic platform for deeper dialogue and cooperation on a range of pressing economic issues. The negotiation process has now entered its final phase, focusing on technical refinement and establishing a detailed timeline for ratification.
