Prabowo urges Germany to support IEU-CEPA finalization

Jakarta (ANTARA) - President Prabowo Subianto has requested Germany’s active support to expedite the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to provide concrete benefits to businesses.

Speaking at the Merdeka Palace on Monday following a bilateral meeting with German President Frank-Walter Steinmeier, Prabowo emphasized that both nations share a mutual interest in deepening economic ties amid an increasingly complex geopolitical landscape.

"We hope that Germany will continue to play an active role in the process of finalizing internal agreements in Europe, so that it can immediately provide concrete benefits to businesses in both countries," Prabowo said in a joint statement.

The IEU-CEPA holds a highly crucial role in boosting trade and investment volumes between Indonesia and European nations, including Germany.

Prabowo further expressed optimism that the long-running negotiations could achieve a substantive conclusion in the near future, aligning with a mutual commitment to foster profitable bilateral trade.

In addition to the trade pact negotiations, the President highlighted that economic ties between Jakarta and Berlin are being reinforced through the Competitiveness Industrial Modernization and Trade Acceleration Program (CITA).

The CITA program is specifically designed to enhance industrial competitiveness, modernize the manufacturing sector and accelerate trade and investment development between the two nations.

The Indonesian government remains optimistic that a strengthened partnership with European countries will unlock broader market opportunities, attract high-quality investments and support sustainable economic growth at home.

The ratification of the IEU-CEPA is targeted for completion in the second half of 2026, before the agreement is expected to enter into force in 2027, Coordinating Economic Affairs Minister Airlangga Hartarto stated earlier.

Covering trade in goods, services, and investment, the agreement commits both sides to eliminate tariffs on more than 98 percent of traded goods.

The government targets a 2.5-fold increase in Indonesian exports to the EU within five years of implementation, especially in labor-intensive sectors such as palm oil, coffee, textiles, fisheries, electronics, footwear, forestry products and furniture.

The EU is already one of Indonesia’s top five investment sources, with bilateral trade valued at about US$30 billion and Indonesian exports at around US$13 billion.

Within ASEAN, Indonesia becomes the third country - after Singapore and Vietnam - to finalize such a trade pact with the EU.

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Translator: Maria Cicilia Galuh Prayudhia, Yashinta Difa

Editor: Primayanti

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