Kadin seeks stronger Indonesia-Sweden ties through EU pact, OECD
Bernardino Vega, Kadin’s vice chairman for international relations, said in Jakarta on Thursday that Indonesia-Sweden ties had a strong diplomatic and economic foundation.
The countries have maintained diplomatic relations since 1950, with cooperation expanding into energy, electric vehicles, sustainability, mining, healthcare and forestry.
Vega said economic ties had strengthened but there was still substantial room to expand cooperation between the two countries.
About 80 Swedish companies currently operate in Indonesia, supporting a business ecosystem involving Indonesian distributors, suppliers and service providers.
Bilateral trade reached about US$825 million in 2025, down from US$868 million in 2024, according to Business Sweden. Trade remains small compared with Indonesia-EU goods trade.
Vega said opportunities to deepen economic ties were growing as Indonesia’s economy expanded and remained Southeast Asia’s largest.
Indonesia’s economy grew 5.11 percent in 2025, according to Statistics Indonesia, while Bank Indonesia forecasts 2026 growth at 4.9 percent to 5.7 percent.
Kadin identified two strategic opportunities for stronger ties: the IEU-CEPA and Indonesia’s ongoing process to join the Organisation for Economic Co-operation and Development.
The IEU-CEPA, whose negotiations concluded in September 2025, is expected to significantly reshape trade between Indonesia and the European market.
The agreement would remove import duties on about 98.5 percent of Indonesian tariff lines for EU goods while expanding services access and simplifying customs procedures.
It would also strengthen intellectual property protection and create greater opportunities for investment and trade between Indonesia and the European Union.
A survey found that 66 percent of Swedish companies operating in Indonesia expected the CEPA to improve their business prospects, while 54 percent anticipated lower import duties.
Kadin also sees Indonesia’s OECD accession process as an opportunity to deepen economic ties, with Sweden able to share expertise in meeting various OECD standards.
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Translator: Ahmad Muzdaffar Fauzan, Cindy Frishanti Octavia