Brussels. President Prabowo Subianto on Sunday called on European countries to increase their investment and technological cooperation with Indonesia, as both sides move toward finalizing a landmark free trade agreement.

Speaking alongside European Commission President Ursula von der Leyen in Brussels, Prabowo lauded the European Union’s leadership in science, technology, and finance, highlighting the potential of a deeper partnership with Indonesia.

“On the other hand, we have critical resources and a key part of ASEAN. So, the partnership between Europe and Indonesia will make a very important contribution to the economic and geopolitical stability in the world,” Prabowo said. “We’d like to see more European presence and participation in our economy.”

Indonesia and the EU have concluded a decade of negotiations for the Comprehensive Economic Partnership Agreement (CEPA), which is slated for ratification later this year.

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Von der Leyen thanked Prabowo for his leadership in bringing the long-awaited trade deal to a conclusion but stressed Europe’s commitment to sustainable and responsible business practices.

“Europe wants not only a secure supply, but also a responsible supply,” von der Leyen said. “That means respect for the environment, respect for the local communities, and a clear focus on good jobs and local value creation. This is the European way of doing business, and you can count on us.”

She described Indonesia as a key economic partner whose potential has yet to be fully tapped.

“Indonesia is one of the largest economies in the world, with a GDP of 1.2 trillion euros. It is a leading supplier of goods that are vital for the digital and green transition, and it represents a growing market of over 287 million people. Together, we represent a market of 730 million people,” von der Leyen said.

Despite this, Indonesia remains only the EU’s fifth-largest trading partner and fifth-biggest recipient of foreign direct investment among ASEAN countries.

“So, there's a lot of untapped potential in our trade relationship, and therefore, this agreement comes at the right time. The new agreement will open new markets. It will create more opportunities in key industries. Business activities in agriculture, automotive, and services will massively benefit from it,” she said.

The CEPA is also expected to strengthen supply chains for critical raw materials essential to Europe’s clean energy and digital transition. Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation, benefiting labor-intensive industries such as footwear, textiles, garments, palm oil, fisheries, renewable energy, and electric vehicles.

Throughout negotiations, the EU raised concerns about local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives. Indonesia, meanwhile, pushed for fairer treatment of its fishery exports, seeking parity with ASEAN neighbors like Thailand and the Philippines. The two sides ultimately agreed to ensure a level playing field for Indonesian fishery products.

The Indonesian government estimates CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and eliminating trade barriers.

The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the bloc last year.

Cabinet Secretary Teddy Indra Wijaya described the president's visit as a new milestone in Indonesia's economic diplomacy because it opens the way for expanded market access in developed nations for Indonesian goods. Teddy also said Prabowo will make a courtesy call on Belgium's King Philippe after he meets with EU leaders.

“The upcoming meeting seeks to strengthen bilateral ties and explore potential collaborations in various sectors between Indonesia and Belgium,” Teddy said.