Indonesia and the European Union have sealed a transformative economic partnership after nine years of negotiations, signing the Comprehensive Economic Partnership Agreement (CEPA) in Bali on Tuesday. The deal marks a strategic shift in Asia-Europe trade dynamics, with 98% of tariff lines set to receive preferential treatment.
"This agreement reflects our shared vision for sustainable growth and supply chain resilience," said Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto. European Commissioner Maroš Šefčovič emphasized the pact's role in securing critical mineral access, particularly nickel and cobalt – resources vital for green energy transitions.
Key beneficiaries include Indonesia's $30.1 billion trade relationship with the EU, projected to double within five years. Palm oil producers and textile manufacturers gain improved market access, while new opportunities emerge in electronics and digital trade sectors. The deal positions Indonesia as the third Southeast Asian nation with an EU CEPA, following Singapore and Vietnam.
European Commission President Ursula von der Leyen noted the agreement would create "predictable supply chains" for European manufacturers. Implementation is expected by early 2027, with both parties committing to environmental standards and workforce development programs.
