The CEPA Agreement with the European Union is a Strategic Step for the Prabowo Administration
Jakarta – President Prabowo Subianto’s administration has successfully concluded negotiations on the Comprehensive Economic Partnership Agreement (CEPA), which is considered a strategic step to strengthen the national economy and expand Indonesia’s market access on the international stage.
President Prabowo emphasized that the successful conclusion of the CEPA agreement represents a significant step forward for Indonesia in opening up opportunities to enter the European Union market. He also highlighted the region’s economic potential as a vital trading partner for Indonesia.
Trade Minister Budi Santoso called this agreement a major opportunity for national exports, especially since import tariffs to the European Union could be reduced to 0%.
“The Indonesia-European Union (IEU)-CEPA has been finalized. Yesterday, President Prabowo Subianto announced it in Brazil. After nearly 10 years of negotiations, it’s finally been finalized. We will gain extensive market access, export facilitation, and even zero-tariff tariffs. So, this is a huge opportunity,” said Budi.
According to him, the European Union market is one of the largest in the world. Its export potential is vast, considering that Indonesia’s current total trade with the region is still relatively small.
“If we look at it, the European Union’s imports from the world are around US$6.6 trillion. America’s imports from the world are around US$3.4 trillion. This means that if we could enter the European Union market, our current total trade with the EU would only be US$30 billion,” he explained.
Under this agreement, he said, several key Indonesian export products will receive a 0% tariff. Budi hopes this will boost the competitiveness of Indonesian products and expand their market reach to the blue continent.
International law expert from the University of Indonesia (UI), Hikmahanto Juwana, believes the success of the CEPA will have an impact on the smooth flow of goods from the European Union to Indonesia.
“The success of the CEPA will smooth the flow of goods from the European Union to Indonesia and vice versa,” said Hikmahanto.
For your information, during his visit to Belgium, Prabowo met with European Commission President Ursula von der Leyen, European Council President Antonio Costa, and Belgium’s King Philippe. During this visit, Indonesia and the European Union successfully agreed on the Comprehensive Economic Partnership Agreement (CEPA), a ten-year negotiation process.
According to Hikmahanto, Prabowo’s visits to Belgium and France have had a positive impact on Indonesia. He said these visits demonstrate Prabowo’s high regard in European countries.
With the completion of the CEPA, President Prabowo’s administration is committed to continuing to push for economic reforms and opening up opportunities for beneficial cooperation for Indonesia at the global level.
