Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) Institute held a Socialization and Preparation Event for the IEU-CEPA Political Agreement and the Indonesia–United States Trade Framework under the theme “Exploring and Implementing Bilateral Trade Pathways: Indonesia–EU and Indonesia–US” at Menara Kadin Indonesia, South Jakarta, on Monday (August 4, 2025).

The event aimed to promote and prepare for the implementation of the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and to strengthen the trade framework between Indonesia and the United States (US).

Speakers at the event included Kadin Indonesia’s Vice Chairman for Foreign Affairs Coordination James T. Riady, Vice Chairman for Trade and International Agreements Pahala Mansury, Indonesian Vice Minister of Foreign Affairs Arif Havas Oegroseno, and Director General of International Trade Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono.

In his opening remarks, James T. Riady emphasized that the trade agreement with the European Union marks a new chapter in Indonesia’s economic relations with the region.

“With the European Union, we are entering a new era through the Indonesia–EU CEPA. It is a bridge that will connect Indonesia’s innovation, resources, and skills with the vast European market,” said James.

He added that Indonesia’s leading export products—such as palm oil, wood, textiles, electronics, and creative industry goods—would gain easier access to European markets thanks to reduced tariff barriers.

James also noted that cooperation with the United States through a reciprocal protection agreement is crucial to ensure export security and open new opportunities in advanced technology, critical minerals, and creative industries.

“Trade agreements are not just about tariffs or numbers on paper. These agreements turn dreams into tangible opportunities. Let us carry a shared vision to make Indonesia a global hub for sustainable trade,” he stated.

Meanwhile, Pahala Mansury, Kadin Indonesia’s Vice Chairman for Trade and International Agreements, highlighted that nearly 99% of Indonesia’s export commodities to the EU will receive preferential treatment under the IEU-CEPA framework, with tariffs potentially reduced to 0%.

“This agreement must be fully optimized, especially as it can boost exports from labor-intensive industries to EU member countries,” said Pahala.

He also pointed out progress in negotiations with the United States, which resulted in lower reciprocal tariffs for Indonesian products—from 32% down to 19%.

“This is a significant advantage for Indonesia, especially compared to countries like Vietnam, Cambodia, or Bangladesh,” he added.

At the same event, Mulya Amri, Executive Director of the Kadin Indonesia Institute, stressed that the business community welcomes the opening of new international trade opportunities facilitated by the government. He said this is a strategic move to accelerate Indonesia’s economic growth.

“We are very pleased with these opportunities. We must encourage and motivate Indonesian businesses to take advantage of them. When the doors to the EU and the US fully open with clearer agreements, we must be ready to engage in trade that will strengthen Indonesia’s economy and create more jobs,” Mulya stated.

Meanwhile, Vice Minister of Foreign Affairs Arif Havas Oegroseno underlined the importance of diversifying Indonesia’s trade partners. Beyond Europe and the US, Indonesia should actively expand its economic presence in regions such as Africa and Latin America.

“North Africa has potential in the fertilizer industry, East Africa needs our medicines and vaccines, and West and South Africa have strong demand for Indonesian products. With a population exceeding one billion, it is a vast market,” he said.

He further noted that Indonesia’s economic footprint in Latin America remains limited and should be strengthened as part of a broader global market expansion strategy.

Additionally, Director General of International Trade Negotiations Djatmiko Bris Witjaksono emphasized that the agreement with the EU requires a high level of readiness due to the complexity of EU standards.

“The European Union already has a far more advanced generation of trade agreements compared to Indonesia. While we are entering the fourth generation, they are already in the seventh or even eighth,” Djatmiko explained.

As background information, the signing of the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is scheduled for September 2025, following the exchange of letters signed on July 13, 2025, in Brussels, Belgium.