On Sunday 13 July, President of the European Commission Ursula von der Leyen announced a “political agreement” with Indonesian President Prabowo Subianto on the future EU/Indonesia Comprehensive Economic Partnership Agreement (CEPA). This is not the conclusion of the negotiations, but rather a strong political signal to move towards a conclusion, nine years after the opening of discussions.
For the Commission, this is an “important milestone” with a view to concluding discussions between European Commissioner for Trade and Economic Security Maroš Šefčovič and Indonesian Coordinating Minister for Economic Affairs Airlangge Hartarto by September.
It was important for the European Union to make such an announcement at a time when transatlantic trade tensions are at their peak. “When economic uncertainty meets geopolitical volatility, partners like us must come closer together”, said Ms von der Leyen to the Indonesian president. She spoke of the two parties’ shared values and the importance of their trade ties, the full potential of which has not yet been realised.
According to the European Commission, ‘CEPA’ should promote investment, sustainable and inclusive growth, and foster the resilience of value chains. For example, the EU is counting on increased coordination with Indonesia on critical raw materials.
The announcement of a political agreement was welcomed by several EU trade ministers on Monday 14 July. “We welcome the agreement in principle reached with Indonesia over the weekend. We will support the continuation and finalisation of these discussions”, said Danish Minister of Foreign Affairs Lars Løkke Rasmussen, on his arrival at the Trade Council. (Original version in French by Léa Marchal)