Jakarta. Indonesia and the European Union (EU) have entered a new chapter in their bilateral ties as they moved closer to securing a free trade agreement.

President Prabowo Subianto recently flew to Brussels over the weekend to meet European Commission President Ursula von der Leyen. Both sides also reached a political agreement to finalize their Comprehensive Economic Partnership Agreement (CEPA) by September.

At the joint news briefing, Prabowo said Indonesia considered Europe a leader in science, technology, and finance. Prabowo also told von der Leyen that Indonesia was abundant in critical resources.

“The partnership between Europe and Indonesia, as a large part of ASEAN, will [provide] a very important contribution to the world's economic and geopolitical stability,” Prabowo said during the joint press conference with von der Leyen in Brussels on Sunday.

Chief Economic Affairs Minister Airlangga Hartarto also joined Prabowo in his visit. The senior minister met European Commissioner for Trade and Economic Security Maroš Šefčovič for CEPA talks. Both officials also signed an exchange letter that would act as a guideline to speed up the pact’s negotiations.

"Indonesia welcomes the political agreement that has been reached. This marks an important milestone towards the completion of the Indonesia-EU CEPA in September 2025,” Airlangga was quoted as saying in a press statement.

According to Airlangga, it also marks both parties’ commitment to strengthening their long-term partnership. 

Indonesia first kicked off its CEPA negotiations with the EU in July 2016. The entire process took at least 19 rounds of official meetings and several inter-session talks. The upcoming pact is expected to give a major boost to trade and investment by eliminating trade barriers. It will pave the way for a predictable and inclusive business environment. 

“This shows that we are working seven days a week,” Airlangga said as the meeting took place on a Sunday.

Likewise, Šefčovič said that the latest developments reflected both sides’ commitment to finalize a forward-looking, comprehensive, and mutually beneficial trade agreement.

"And this truly proves, as you said, that we are working day and night, weekend after weekend, just to ensure that our bilateral relationship continues to improve. We are creating enormous new opportunities for business people, for small and medium-sized enterprises, and for both Indonesia and the EU,” Šefčovič said.

The government reported that both sides were now finalizing the technical issues of the pact, including fine-tuning the document and setting up a detailed timeframe for its ratification.

Add as a preferred source on Google +