After a nine-year journey of negotiations starting in Brussels in 2016, Indonesia and the European Union formalized a landmark Comprehensive Economic Partnership Agreement (CEPA) in Bali on Tuesday. The pact marks a significant step toward a more open, fair, and sustainable global economy.
“This historic milestone reflects our collective commitment to sustainable trade and investment,” said Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto. He spoke alongside European Commissioner for Trade and Economic Security, Maros Sefcovic, highlighting the pact’s potential to reshape regional and global supply chains.
Under the agreement, about 98% of tariff lines covering goods, services, and investment will enjoy preferential treatment. Key Indonesian exports—palm oil, textiles, footwear, and processed agricultural goods—stand to gain immediate advantages. Meanwhile, European firms eye new markets for electronics, high-tech products, and digital services.
Sefcovic emphasized the deal’s role in diversifying supply chains for critical minerals. “With Indonesia’s abundant nickel and cobalt reserves, the pact promises a stable and predictable supply for Europe’s green technology ambitions,” he noted.
Trade between Indonesia and the EU topped $30.1 billion in 2024. Officials expect bilateral trade to double within five years of CEPA implementation, slated to take effect in early 2027. Indonesia becomes the third Southeast Asian nation, after Singapore and Vietnam, to formalize such a deal with the EU.
For young entrepreneurs, tech enthusiasts, and global citizens alike, this deal opens new doors for cross-border collaboration, sustainable investment, and digital innovation. As emerging markets gain traction, the CEPA underscores the power of long-term negotiations to drive real-world impact.
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Indonesia, EU sign economic partnership deal after 9 years of talks
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