The European Union and Indonesia have reached an agreement on the long-awaited Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in bilateral relations and paving the way for the deal’s finalization by September 2025.

The agreement was announced following a high-level meeting in Brussels between President of the European Commission Ursula von der Leyen and Indonesian President Prabowo Subianto. The consensus signifies a renewed commitment to openness, mutual prosperity, and rules-based cooperation between EU and Southeast Asia’s largest economy.

“This is a decisive moment,” President von der Leyen said as quoted in a statement on Monday, July 14, 2025. “Europe and Indonesia are choosing a path of openness, partnership, and shared prosperity. The agreement will open new markets and create more opportunities for our businesses. It will also strengthen the supply chains of critical raw materials, essential for Europe’s clean tech and steel industries.”

President Prabowo echoed the sentiment, framing the CEPA as not just a trade pact but a broader platform for economic justice and sustainable development.

“This is an important moment. After many years of hard work, we have agreed to move forward,” he said. “For Indonesia, CEPA is not only about trade. It is about fairness, respect, and building a strong future together. The agreement must support our efforts to grow our industries, create jobs, and advance our sustainable development goals. We are ready to finalize it soon in a way that benefits both our peoples.”

Dimensions

Once finalized, the CEPA is expected to significantly boost trade and investment flows, promote inclusive and sustainable economic growth, and enhance the resilience of both economies. A key feature of the agreement is deeper cooperation on critical raw materials, a sector that is vital to both sides’ industrial strategies − particularly in relation to clean energy and technology transitions.

Beyond economic priorities, the agreement is poised to serve as a cornerstone in the long-standing EU–Indonesia relationship. Both sides reaffirmed their commitment to a broader strategic partnership grounded in shared democratic values, human rights, and the rule of law.

In a move aimed at fostering stronger people-to-people ties, the European Commission has adopted a visa “cascade” decision for Indonesia, streamlining access to multiple-entry visas for Indonesian travelers. This is expected to facilitate greater cultural, academic, and business exchanges between the two regions.

The two leaders also highlighted their joint dedication to a fair and inclusive clean energy transition. Indonesia emphasized its domestic roadmap toward energy self-sufficiency and resilience as outlined in its national development plan, the Asta Cita. In this context, Indonesia welcomed continued collaboration under the Just Energy Transition Partnership (JETP) and the EU’s Global Gateway initiative.

Global peace and regional cooperation

President von der Leyen and President Prabowo expressed strong support for multilateralism and a rules-based international order. They pledged closer cooperation at the United Nations, and reiterated their shared commitment to peace and security, including efforts to address the ongoing crises in Ukraine and the Middle East.

Additionally, both leaders emphasized their dedication to deepening cooperation between the EU and ASEAN, recognizing the Indo-Pacific region as a vital space for promoting peace, prosperity, and sustainable development.

Stronger partnership

As the EU–Indonesia CEPA moves toward formal ratification, the agreement stands as a defining achievement in bilateral cooperation, reinforcing a shared vision of economic openness and global responsibility. Both leaders agreed that the growing relationship between the EU and Indonesia − anchored in mutual values and strategic interests − should evolve into a stronger and more comprehensive partnership in the years to come.