German President Backs IEU-CEPA Ratification to Strengthen Trade

German Federal President Frank-Walter Steinmeier has voiced his support for expediting the ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is expected to significantly boost trade and investment between Indonesia and Germany. In a joint statement with President Prabowo Subianto at Merdeka Palace in Jakarta on Monday, President Steinmeier welcomed the progress of the long-running negotiations, which are now moving towards ratification. “We hope that the IEU-CEPA, after such a long time, will finally be signed. This would eliminate up to 90 percent of customs duties. We in Germany also feel a responsibility to ratify this agreement promptly,” said President Steinmeier. According to Steinmeier, the IEU-CEPA holds immense potential to drive new investment, including opening pathways for German small and medium-sized enterprises to expand their investments in Indonesia. The agreement is also believed to strengthen economic growth while enhancing collaboration between Indonesian and German companies, particularly in the fields of innovation and technology development. President Prabowo Subianto and President Steinmeier agreed to bolster economic ties through mutually beneficial trade and investment. President Prabowo emphasised Indonesia and Germany’s commitment to continuously expanding economic cooperation across various strategic sectors. “We agreed to continue increasing the volume of mutually beneficial trade and investment,” stated President Prabowo. He also underscored the importance of relations between Indonesia and Europe, noting that the conclusion of the IEU-CEPA would deliver tangible benefits to businesses in both regions. He expressed hope that Germany would continue to play an active role in driving the finalisation of the agreement within the European Union. Beyond trade cooperation, Indonesia-Germany relations are also being strengthened through the Competitiveness Industrial Modernization and Trade Acceleration Program (CITA), which aims to enhance industrial competitiveness and accelerate trade. President Prabowo also invited German investors to expand their investments in Indonesia, particularly in priority sectors being developed by the government.