“Check against delivery”
Thank you, Minister Airlangga, for the warm welcome, your leadership and excellent collaboration that made todays milestone possible.
We have reached a historic breakthrough with the conclusion of the EU-Indonesia Comprehensive Economic Partnership Agreement – a game-changer for both our economies and our partnership.
Trade between the EU and Indonesia is already solid.
In 2024, goods trade exceeded 27 billion euros, with Indonesia maintaining a goods trade surplus.
Meanwhile, the EU holds a lead in services trade, which added nearly 9 billion euros.
European investment in Indonesia tops 25 billion euros, underscoring growing confidence and opportunity.
Yet Indonesia is only the European Unions fifth-largest ASEAN trade partner. That means there is huge untapped potential.
This agreement eliminates over 98% of tariffs, removing nearly all barriers to trade and opening new pathways for investment.
Key sectors on both sides will benefit – from palm oil, textiles, and footwear in Indonesia to agri-food, automotive and chemical industries in the EU.
Importantly, the agreement was crafted with full respect for each sides priorities and sensitivities, ensuring a balanced outcome.
For example, Indonesias 50% import tariff on cars will be gradually eliminated over five years – opening the door for EU automotive exports, while fostering much-sought EU investment in electric vehicles, among others.
EU exporters alone stand to save more than 600 million euros in customs duties on goods shipped to Indonesia – funds that can be reinvested into innovation, expansion, and job creation.
Importantly, the CEPA paves the way for closer cooperation in cutting-edge sectors, like electric cars, pharmaceuticals and electronics – crucial for the future of both our economies.
The CEPA also helps secure critical raw materials for green and digital tech, encourages renewable energy investment, and upholds strong environmental and labour standards.
Plus, it facilitates digital trade, especially helping small and medium businesses.
All in all, in a world of rising protectionism and fragile supply chains, when many turn inward, the CEPA sends a clear signal that the EU and Indonesia are choosing openness and partnership to boost their competitiveness, create jobs and strengthen resilience.
Moreover, todays agreement goes beyond economics. Indonesia is a key partner for the EU in the Indo-Pacific region, and this opens the door to closer political ties, too.
I am also convinced that this partnership will also strengthen people-to-people ties.
Indonesia is already among the top 12 countries with the highest number of postgraduate students in the EU – around 4,000 in total – with approximately 300 Indonesian students participating in the Erasmus programme each year.
We are also advancing the “1,000 Green Engineers” initiative, which will further connect our us through shared innovation and learning.
To conclude, both, Indonesia and the EU stand to gain and grow through this new chapter.
