Indonesia’s business sector is preparing to take full advantage of new opportunities in the European market following the finalization of the Indonesia-EU Comprehensive Economic Partnership Agreement (I–EU CEPA) in July 2025. The agreement is viewed as the start of a new chapter for strengthening Indonesia’s export performance to one of the world’s largest markets. Business representatives highlight that the deal reflects a shared commitment to building a balanced and forward-looking economic partnership, enabling Indonesia to expand the reach of key export products such as footwear, furniture, bio-industry goods, and minerals. With the EU remaining a major global market, Indonesia has the potential to position itself as a reliable and sustainable supplier of high-quality products.
The completion of CEPA is also seen as a foundation for deeper long-term cooperation. Bilateral trade between Indonesia and the EU showed strong growth throughout 2024, with the bloc now ranking as Indonesia’s fifth-largest trading partner. CEPA is expected to bring substantial benefits by eliminating tariffs on more than 98% of EU products entering Indonesia while opening access for 91% of Indonesian exports to Europe. Indonesia’s supply capacity for sustainable industries—such as nickel, palm oil, coffee, and renewable energy including geothermal and hydropower—is anticipated to support its stronger role in global green value chains. The strengthened collaboration is expected to reinforce Indonesia’s position in international trade and enhance economic resilience in the years ahead.
