On the 13^th July, in Brussels, President von der Leyen and President Prabowo Subianto of the Republic of Indonesia announced a political agreement on the EU–Indonesia Comprehensive Economic Partnership Agreement (CEPA).

This marks a major milestone: both sides have agreed in principle on the core political and strategic elements of the deal.  You can find the European Commission’s official statement here.

Following the announcement, FESI convened a meeting between DG Trade and the CEPA coalition - a group of like-minded EU trade associations advocating for an ambitious agreement.

During the meeting, the Commission provided insights into the latest developments, the outlook for concluding negotiations in the coming months, and the expected next steps. Please find the meeting minutes below for your reference.

As a related update, the White House has also published a factsheet this week on the U.S.-Indonesia trade deal, which may be of interest.

1. State of play and political momentum

• The negotiations have significantly accelerated in recent months, especially after a period of lower engagement due to political transitions on both sides.
• A political agreement was reached on 13 July 2025 between President von der Leyen and President Prabowo.
• This follows recent high-level ministerial engagement (notably between Commissioner Šefčovič and Coordinating Minister Airlangga), which helped unlock key political decisions.
• The political agreement defines the "landing zone" – now it's up to negotiators to finalise and translate it into legal text.
• A full week of negotiations followed the announcement, with technical work ongoing.

2. Negotiation progress and substance

• Market access:

• Most issues in goods, services, and investment chapters are agreed.
• Only a few tariff lines and the length of liberalisation remain open.
• Final outcome expected to be very favourable for EU companies, better than past agreements concluded by Indonesia.

• Key topics covered:

• Export restrictions, import licensing, investments, raw materials, and sustainability were key sticking points - now largely resolved through pragmatic solutions.
• On public procurement, the agreement includes strong principles and rules, though compromises were made to conclude the deal.

• Text finalisation:

• Legal scrubbing and translations will follow once negotiations conclude.
• Full text and annexes will be published together post-September.

3. Timeline and next steps

• Target timeline:

• September 2025: Formal conclusion of negotiations.
• Post-September: Publication of legal text, Council authorisation, signature, and ratification.
• Q1 2027: Entry into force is a realistic (but not guaranteed) target.

• Why September?

• Sufficient time is needed to double/triple-check the legal text.
• Commissioner Šefčovič will travel to Southeast Asia in September, which aligns with the final push.

• The Commission underlined a shared sense of urgency and strong momentum on both sides to finalise and implement the agreement swiftly.

4. Role of EU industry and CEPA Coalition

• DG Trade stressed the value of business engagement, praising previous CEPA Coalition efforts.
• Supportive messaging from industry remains meaningful and is encouraged - especially in public and political discourse.
• Once the deal is concluded, continued industry engagement will be key during ratification.
• Consider focusing on investment as a key theme - Indonesia is actively seeking investment and partnerships from Europe.

5. Broader geopolitical context

• The Commission is monitoring Indonesia-US trade talks, though information is limited due to the confidential nature of those discussions.
• EU is concerned about potential concessions offered to the US and how they might impact the EU's position or benefits under CEPA.