Brussels, Belgium - The agreement reached between Indonesian President Prabowo Subianto and President of the European Commission Ursula von der Leyen on Sunday (July 13, 2025) is expected to significantly boost trade between the two parties. In 2024, total trade between Indonesia and the European Union (EU) reached €27 billion, a figure projected to grow substantially in the coming years.

“This is a major breakthrough in international trade between Indonesia and the European Union, following nearly a decade of negotiations,” said Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Anindya N. Bakrie in Brussels on Sunday (13/07/2025).

Anindya explained that the political agreement signed by President Prabowo and President von der Leyen has the potential to elevate bilateral trade volumes. In 2024, Indonesia-EU trade reached US$30.1 billion or €27.3 billion, comprising €9.7 billion in EU exports to Indonesia and €17.5 billion in EU imports from Indonesia.

Referring to the EU-Vietnam CEPA (Comprehensive Economic Partnership Agreement), Anindya — familiarly known as Anin — noted that total trade between the two parties rose by 20%, from €56 billion prior to the CEPA signing to €67 billion after the agreement was ratified by both Vietnam and the EU. A similar upward trend is anticipated for Indonesia and the EU.

“In today’s multipolar era, Indonesian companies and Kadin members must seize this momentum to diversify and actively explore new markets to strengthen international trade and support Indonesia’s economic growth,” Anin urged.

“I had the opportunity to meet with the CEO of BusinessEurope, the EU’s counterpart to Kadin. Kadin Indonesia and BusinessEurope will collaborate intensively so that business leaders and entrepreneurs across both regions can fully benefit from the CEPA,” he added.

Key sectors expected to benefit from the agreement include textiles, commodities, palm oil, and other essential goods demanded by European markets.

A Political Agreement for a Stronger Partnership

“In times when economic uncertainty is intertwined with geopolitical tensions, as business partners we must come closer together. Today, we are taking a major step forward in this partnership. We have just reached a political agreement on an ambitious free trade deal.

This is a comprehensive economic partnership agreement after ten years of negotiation. We have achieved a breakthrough. I want to thank you, President Prabowo, for your leadership.

The message we send today is powerful and clear. In challenging times, some choose isolation and fragmentation. Europe and Indonesia choose a different path — a path of openness, partnership, and shared opportunity,” stated European Commission President Ursula von der Leyen in Brussels, Sunday, July 13, 2025.