Centre for Strategic and International Studies (CSIS) Indonesia and Konrad‑Adenauer‑Stiftung discuss how a recently held strategic dialogue underscored the growing complexity of global trade and the opportunity for deeper cooperation between Europe and Indonesia through the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU‑CEPA). Amid heightened protectionism and diversification of supply chains, the agreement is framed not merely as a trade deal but as a long-term cooperation platform, particularly in areas such as green energy, digital transformation, and infrastructure. Indonesian officials highlighted the agreement’s potential to boost GDP, improve investment climates, and harmonize regulations, while European partners pointed to its role in diversifying supply chains and strengthening economic security.
The discussion further explored how Indonesia can position itself as a strategic hub within Europe’s Asia-Pacific supply chain access, leveraging its geographic and demographic advantages. Yet speakers acknowledged that realizing this role requires resolving internal structural challenges such as logistics inefficiencies, regulatory unpredictability, and underdeveloped infrastructure. Moreover, making IEU-CEPA effective calls for tackling non-tariff barriers, aligning standards (including in renewable resources and the digital economy), and shifting from agreement signing to practical implementation. Both sides were urged to elevate trust, strategic alignment and follow-through so that the partnership produces tangible outcomes and shared growth.
