Indonesia, EU Enter Final Phase of Trade Deal Talks as Deadline Nears
Main Takeaways
|
JAKARTA, investortrust.id – Indonesia and the European Union have entered the final phase of negotiations for a landmark trade and investment agreement that both parties hope to finalize by mid-2025. The accord, known as the Indonesia-European Union Comprehensive Economic Partnership Agreement, is designed to boost bilateral trade and unlock new investment opportunities between Southeast Asia’s largest economy and the EU bloc.
The announcement came following a virtual meeting on Tuesday, May 6, 2025, between Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and European Commissioner for Trade Maros Sefcovic. Both officials reaffirmed their commitment to accelerating the deal, which has been in the works since 2016.
“We are committed to working together and using this momentum while upholding the rule of law,” said Airlangga in Jakarta. The latest dialogue follows a series of technical discussions aimed at resolving outstanding issues in the comprehensive agreement.
Since negotiations began nearly a decade ago, the two sides have completed 19 rounds of talks, covering strategic areas such as trade in goods and services, investment flows, public procurement, regulatory harmonization, and capacity-building cooperation.
The Indonesian government reiterated its determination to swiftly conclude the talks as a way to widen market access and deepen economic ties with the European Union, which is already among Indonesia’s top five trading partners.
Commissioner Sefcovic welcomed the progress made by the chief negotiators and described the developments as “a positive signal” for bilateral trade. He also noted that the EU is currently exploring a similar agreement with the United States, as part of its broader strategy to diversify trade partnerships amid shifting global dynamics.
With global trade facing heightened volatility, the relevance of IEU-CEPA has become more pronounced. Approximately 87 percent of global merchandise trade now occurs outside the United States, underscoring the need for stronger regional alliances and diversified markets.
To ensure a smooth path to conclusion, both parties have agreed to maintain intensive communication and constructively resolve any remaining technical issues.
“Finalizing the IEU-CEPA will strengthen the economic foundation between Indonesia and the EU as we confront increasingly complex global challenges,” Airlangga stated.