Government Welcomes Political Agreement on Indonesia-EU Comprehensive Economic Partnership
The Indonesian government has expressed its appreciation for the political agreement on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), announced in Brussels, Belgium. The achievement marks a historic moment following nine years of intensive negotiations since 2016, reflecting Indonesia's strong commitment to strengthening its strategic economic partnership with the European Union.
The landmark agreement was announced jointly by President Prabowo Subianto and European Commission President Ursula von der Leyen, accompanied by officials from technical ministries including the Coordinating Ministry for Economic Affairs, the Ministry of Investment and Downstreaming/BKPM, the Ministry of Trade, and other relevant institutions.
As a comprehensive agreement, IEU-CEPA covers a wide range of critical aspects from trade in goods and services, investment protection, and technical provisions to sustainable development cooperation. The agreement opens broader market access for Indonesia's key products whilst strengthening the legal framework and business certainty for investors from both sides.
Minister of Investment and Downstreaming/BKPM Rosan Roeslani stated that bilateral trade volumes between Indonesia and the EU following the IEU-CEPA agreement have the potential to multiply to US$60 billion within the coming years. Beyond expanding exports, the agreement is also projected to drive a surge in Foreign Direct Investment (FDI), particularly in the manufacturing, downstreaming, new and renewable energy, and industrial digitalisation sectors.
One of the strategic achievements within the agreement is the conclusion of the Investment Chapter — a critical component that had for years been the primary challenge in negotiations between the two parties. Under the leadership of the Minister of Investment and Downstreaming/Head of BKPM and the Investment Chapter negotiating team led by Tirta Nugraha Mursitama, Deputy for Investment Cooperation at the Ministry of Investment and Downstreaming/BKPM, Indonesia successfully concluded the Investment Chapter agreement. This achievement affirms Indonesia's commitment to creating an open and competitive investment climate whilst strengthening its position in global economic cooperation.
A New Magnet for Quality Investment
The IEU-CEPA agreement is believed to serve as a key catalyst for attracting quality investment from EU member states into Indonesia. A number of European partners have shown strong interest in expanding their investment footprint in the country, particularly in strategic sectors that are national development priorities.
Germany, for instance, sees significant potential in the development of electric vehicle industries and high-technology manufacturing supply chains. France has affirmed its commitment to supporting the national energy transition agenda through investment in solar power plant projects and sustainable green technology development.
The Netherlands, meanwhile, has positioned Indonesia as a key partner in smart logistics development and environmentally friendly port digitalisation. In the healthcare sector, Italy is interested in strengthening cooperation in the pharmaceutical, medical devices, and biotechnology industries. Denmark, with its expertise in wind energy and energy efficiency, offers innovation-based environmental partnerships. Finland is opening significant opportunities in information technology and digital education, including the application of artificial intelligence and sustainable distance learning systems.
Maintaining Balance, Ensuring Sovereignty
The success of IEU-CEPA lies not only in the scale of economic opportunities it offers but also in how Indonesia has designed the agreement in a balanced and sovereign manner. Investor protection mechanisms were agreed upon with a transparent and accountable approach, whilst still providing policy space for the government — particularly in supporting the downstreaming agenda, energy transition, and empowerment of local businesses.
With IEU-CEPA coming into effect, Indonesia affirms its position as a strategic industrial hub in the Indo-Pacific region. The agreement does not merely open the door to global investment but also strengthens investment diplomacy in building a foundation for long-term partnerships based on sustainability, innovation, and digital transformation.
The landmark agreement was announced jointly by President Prabowo Subianto and European Commission President Ursula von der Leyen, accompanied by officials from technical ministries including the Coordinating Ministry for Economic Affairs, the Ministry of Investment and Downstreaming/BKPM, the Ministry of Trade, and other relevant institutions.
As a comprehensive agreement, IEU-CEPA covers a wide range of critical aspects from trade in goods and services, investment protection, and technical provisions to sustainable development cooperation. The agreement opens broader market access for Indonesia's key products whilst strengthening the legal framework and business certainty for investors from both sides.
Minister of Investment and Downstreaming/BKPM Rosan Roeslani stated that bilateral trade volumes between Indonesia and the EU following the IEU-CEPA agreement have the potential to multiply to US$60 billion within the coming years. Beyond expanding exports, the agreement is also projected to drive a surge in Foreign Direct Investment (FDI), particularly in the manufacturing, downstreaming, new and renewable energy, and industrial digitalisation sectors.
One of the strategic achievements within the agreement is the conclusion of the Investment Chapter — a critical component that had for years been the primary challenge in negotiations between the two parties. Under the leadership of the Minister of Investment and Downstreaming/Head of BKPM and the Investment Chapter negotiating team led by Tirta Nugraha Mursitama, Deputy for Investment Cooperation at the Ministry of Investment and Downstreaming/BKPM, Indonesia successfully concluded the Investment Chapter agreement. This achievement affirms Indonesia's commitment to creating an open and competitive investment climate whilst strengthening its position in global economic cooperation.
A New Magnet for Quality Investment
The IEU-CEPA agreement is believed to serve as a key catalyst for attracting quality investment from EU member states into Indonesia. A number of European partners have shown strong interest in expanding their investment footprint in the country, particularly in strategic sectors that are national development priorities.
Germany, for instance, sees significant potential in the development of electric vehicle industries and high-technology manufacturing supply chains. France has affirmed its commitment to supporting the national energy transition agenda through investment in solar power plant projects and sustainable green technology development.
The Netherlands, meanwhile, has positioned Indonesia as a key partner in smart logistics development and environmentally friendly port digitalisation. In the healthcare sector, Italy is interested in strengthening cooperation in the pharmaceutical, medical devices, and biotechnology industries. Denmark, with its expertise in wind energy and energy efficiency, offers innovation-based environmental partnerships. Finland is opening significant opportunities in information technology and digital education, including the application of artificial intelligence and sustainable distance learning systems.
Maintaining Balance, Ensuring Sovereignty
The success of IEU-CEPA lies not only in the scale of economic opportunities it offers but also in how Indonesia has designed the agreement in a balanced and sovereign manner. Investor protection mechanisms were agreed upon with a transparent and accountable approach, whilst still providing policy space for the government — particularly in supporting the downstreaming agenda, energy transition, and empowerment of local businesses.
With IEU-CEPA coming into effect, Indonesia affirms its position as a strategic industrial hub in the Indo-Pacific region. The agreement does not merely open the door to global investment but also strengthens investment diplomacy in building a foundation for long-term partnerships based on sustainability, innovation, and digital transformation.