September 24, 2025 | 11:29 am
TEMPO.CO, Jakarta - The Chair of the Indonesian Employers Association (Apindo), Shinta Widjaja Kamdani, is confident that the new Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will significantly boost bilateral trade. She projected that Indonesia’s trade with the EU could reach US$60 billion with the agreement in place.
"Bilateral trade is targeted to soar to US$60 billion, with Indonesia’s export volume rising by more than 50% in just three to four years," said Shinta after the IEU-CEPA signing in Bali on Tuesday, September 23, 2025.
Shinta described the signing as both a major diplomatic achievement and a game-changer, signaling a shift from a potential economy to a performance economy. She noted that the IEU-CEPA is the result of a long process of policy alignment among the government, businesses, and other stakeholders, which deserves recognition.
According to Shinta, the Indonesian business community views IEU-CEPA as a strategic tool to expand export market access, attract investment, and enhance national industry competitiveness.
Even without a specific preferential framework, Indonesia's exports to the 27 EU countries reached US$17.34 billion in 2024. With IEU-CEPA, almost all tariff barriers will be removed, providing a significant boost to Indonesia's export performance. This will give Indonesia’s exports full access to the European market while also creating opportunities for European businesses in the Indonesian market, which has more than 270 million consumers.
The agreement is also projected to increase Indonesia's Gross Domestic Product (GDP) by 0.19% and drive a 0.42% increase in foreign direct investment (FDI).
For Shinta, this agreement is not only a trade diplomacy achievement but also a crucial milestone that will open a new chapter in Indonesia's economic relations with the EU. Simultaneously, it is expected to have a tangible impact on business competitiveness and investment growth. "And opening access, not only for large companies, but also for professional workers," she added.
Shinta highlighted that key Indonesian sectors such as palm oil, textiles, footwear, and fisheries will gain broader access to the EU market. Additionally, professional service sectors like architecture, legal consulting, and the creative industry are expected to compete on quality and innovation, not just price. Meanwhile, the EU will have greater opportunities in the Indonesian market, particularly in agriculture, manufacturing, and professional services.
She emphasized that the successful implementation of IEU-CEPA depends on inclusion, collaboration, and joint execution among all relevant parties. If any of these elements are missing, she believes its potential will not be realized. "Apindo is ready to work with the government, European partners, and civil society to ensure CEPA becomes a catalyst for inclusive, green, and sustainable economic growth," said Shinta.
The IEU-CEPA document was officially signed by Coordinating Minister for Economic Affairs Airlangga Hartarto and European Commission Trade and Economic Affairs Commissioner Maros Sefcovic. The event was also attended by EU member state ambassadors and private sector representatives.
"Today, we mark an important milestone in the long-term partnership between Indonesia and the EU. We welcome the substantive conclusion of the Indonesia-European Union Comprehensive Economic Partnership negotiations," said Airlangga.
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