COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/241/SET.M.EKON.3/07/2025

Indonesia-European Union Negotiations Reach the Finish Line

Brussels, May 13th, 2025
 

A historic milestone in the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU CEPA) negotiations was marked by the signing and exchange of letters between the Government of Indonesia and the European Commission. This exchange represents a high-level political agreement to accelerate the finalization of the IEU CEPA negotiations. The letters were exchanged between Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and the European Commissioner for Trade Maroš Šefčovič.

The meeting began with a tête-à-tête session, followed by the exchange of letters that signaled a significant achievement in the finalization process of the IEU CEPA. The letters conveyed appreciation for the progress made and reaffirmed a joint commitment to conclusively conclude the negotiations, including concrete steps to resolve remaining substantive issues. This exchange stands as a strong symbol of both parties’ determination to advance the substantive completion of the IEU CEPA toward signing in 2025 through mutually beneficial and balanced solutions.

“I would like to express my gratitude for the continued commitment and constructive engagement of the European Union. The support from Commissioner Maroš and the negotiating teams from both countries has been invaluable throughout the IEU CEPA process,” emphasized Coordinating Minister Airlangga.

“This political agreement marks the most important milestone in negotiations that have been ongoing since 2016. We are dedicated to strengthening our relationship with the Southeast Asian region, and the IEU CEPA is a key instrument to achieve this,” stated Commissioner Maroš with confidence.

With a population exceeding 285 million, Indonesia offers a large and dynamic market for its trading partners. Meanwhile, the European Union, home to over 400 million people, remains one of the world’s major economic powers. Under the IEU CEPA, approximately 80 percent of tariff lines will be eliminated, opening broader opportunities for trade and investment for both parties.

The completion of the IEU CEPA negotiations was officially announced during a bilateral meeting between President of the Republic of Indonesia Prabowo Subianto and European Commission President Ursula von der Leyen, held in Brussels on the same day. In a joint press statement, the leaders reaffirmed their commitment to strengthen the strategic partnership, including accelerating the finalization of the IEU CEPA.

President von der Leyen officially conveyed that Indonesia and the European Union have reached a political agreement that lays the foundation for the IEU CEPA’s conclusion in the near future. “This agreement will also help strengthen critical raw material supply chains essential for Europe’s clean technology and steel industries. I now look forward to the swift conclusion of this agreement,” President von der Leyen said.

President Prabowo also expressed his appreciation to the negotiating teams from both sides for their hard work in resolving the crucial issues that had long been obstacles. “I am also very pleased to see that the ministers and commissioners from both sides have achieved what I call a strategic breakthrough. Currently, there are no longer major issues dividing the European Union and Indonesia, which is extraordinary,” President Prabowo added.

With this exchange of letters, Indonesia and the European Union are drawing closer to concluding a negotiation process now entering its tenth year, having conducted 19 formal rounds and numerous intersessional meetings. On the Indonesian side, technical negotiations have been coordinated by the Directorate General for International Trade Negotiations, Ministry of Trade.

Also present at the bilateral meeting were Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Deputy for Coordination of Economic Cooperation and Investment Edi Prio Pambudi, Assistant Deputy for Bilateral Economic Cooperation Irwan Sinaga, Director of Intra- and Inter-Regional Cooperation for the Americas and Europe at the Ministry of Foreign Affairs Nidya Kartikasari, and the EU Chief Negotiator Fabien Gehl. (is/aay/abn/dep2/map/fsr/hls)

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Secretary of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Susiwijono Moegiarso

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