Indonesia-EU Free Trade Deal Unites 700 Million Consumers Worth Rp975 Trillion
Paris: The conclusion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will open market access nearly 2.5 times the size of Indonesia's domestic market for both parties.
According to Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, the agreement is set to be signed in September 2025.
"We will then ratify it as soon as possible to diversify our market. Combining our population with the European Union, the total exceeds 700 million people, so this is certainly an extremely positive development," Rosan said when met in Paris, France, on Monday, 14 July 2025.
Rosan and several ministers accompanied President Prabowo Subianto as he agreed to the IEU-CEPA at the European Commission headquarters in Brussels, Belgium, on the same day. President Prabowo and the delegation subsequently continued their visit to Paris to attend the Bastille Day celebrations later that afternoon.
IEU-CEPA trade value reaches Rp975 trillion
With the implementation of IEU-CEPA, Rosan expressed optimism that Indonesia would reap significant positive impacts in both trade and investment. Indonesia itself gains market access to all 27 EU member states.
"It is hoped that with IEU-CEPA, trade can increase to USD60 billion (approximately Rp975 trillion) from roughly USD25 billion, and we also expect investment to turn positive," Rosan said.
Rosan noted that in terms of investment, several EU companies have already made commitments. Currently, the largest share of investment comes from the Netherlands. He expressed confidence that other countries would increase their investments in Indonesia.
In 2024, total Indonesia-EU trade was recorded at USD30.1 billion, equivalent to 27.3 billion euros. This comprised EU exports to Indonesia of 9.7 billion euros and EU imports from Indonesia of 17.5 billion euros.
According to Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, the agreement is set to be signed in September 2025.
"We will then ratify it as soon as possible to diversify our market. Combining our population with the European Union, the total exceeds 700 million people, so this is certainly an extremely positive development," Rosan said when met in Paris, France, on Monday, 14 July 2025.
Rosan and several ministers accompanied President Prabowo Subianto as he agreed to the IEU-CEPA at the European Commission headquarters in Brussels, Belgium, on the same day. President Prabowo and the delegation subsequently continued their visit to Paris to attend the Bastille Day celebrations later that afternoon.
IEU-CEPA trade value reaches Rp975 trillion
With the implementation of IEU-CEPA, Rosan expressed optimism that Indonesia would reap significant positive impacts in both trade and investment. Indonesia itself gains market access to all 27 EU member states.
"It is hoped that with IEU-CEPA, trade can increase to USD60 billion (approximately Rp975 trillion) from roughly USD25 billion, and we also expect investment to turn positive," Rosan said.
Rosan noted that in terms of investment, several EU companies have already made commitments. Currently, the largest share of investment comes from the Netherlands. He expressed confidence that other countries would increase their investments in Indonesia.
In 2024, total Indonesia-EU trade was recorded at USD30.1 billion, equivalent to 27.3 billion euros. This comprised EU exports to Indonesia of 9.7 billion euros and EU imports from Indonesia of 17.5 billion euros.