The Historic Game‑Changer: CEPA
Europe and Indonesia: A New Chapter in Trade and Cooperation
eyesonindonesia
Amsterdam, 24 March 2026– A few years back, In 2018, Indonesia and the European Union signed a €10 million financing agreement for ARISE+ Indonesia, a five‑year program designed to strengthen Indonesia’s export competitiveness and integration into global value chains.
Four product categories were prioritized: agri‑food, fish, wood products, and cosmetics.
The results were immediate. ARISE+ provided opportunities and support to domestic industries, including SMEs. Indonesian MSMEs in textiles and halal food successfully entered six European e‑markets in Spain, Hungary, France, and Germany.
The program also improved investment policy planning and enhanced the capacity of Indonesian stakeholders to analyze trade policies.
Beyond export promotion, ARISE+ supported the development of an EU‑Indonesia Investment Attraction Plan and organized a study mission to Europe for Indonesian officials. This facilitated connections between the Indonesian Investment Promotion Center and prospective EU companies.
The plan envisioned a reactivated EU Desk at Indonesia’s Ministry of Investment, linking sustainable projects with EU financing instruments such as the Global Gateway and the European Fund for Sustainable Development Plus.
If ARISE+ laid the plumbing, the EU‑Indonesia Comprehensive Economic Partnership Agreement (CEPA) is the main water supply. On 23 September 2025, both parties concluded negotiations in Bali after nearly a decade of talks. The agreement eliminates tariffs on over 98% of tariff lines, covering nearly all trade by value between the two economies.
The scale of opportunity is immense. In 2024, goods trade reached €27.3 billion, services trade €8.8 billion, and EU investment stocks €25.1 billion. CEPA is expected to accelerate growth in strategic sectors such as electric vehicles, electronics, and pharmaceuticals.
For the innovation and startup community, CEPA’s digital provisions are crucial. The agreement strengthens digital trade rules, protects cross‑border data flows, bans customs duties on electronic transmissions, and enhances transparency in government procurement.
It also creates new opportunities in green sectors by eliminating tariffs on sustainable goods and improving regulations in renewable energy and electric vehicles.
EU Trade Commissioner Maroš Šefčovič highlighted the broader significance: “In today’s unpredictable global economy, trade relationships are not merely economic tools — they are strategic assets that signal trust, alignment, and resilience.”
Indonesian officials are targeting 1 January 2027 for entry into force, pending ratification on both sides.
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