EU and Indonesia Reach Political Agreement on Free Trade
The EU and Indonesia have finalized a political agreement on free trade, enhancing their partnership amid global uncertainties.
Key Points
- • EU and Indonesia have reached a political agreement on free trade.
- • Ursula von der Leyen met Indonesian President Prabowo Subianto to announce the agreement.
- • The partnership aims to address economic and geopolitical challenges.
- • This agreement represents a significant advancement in EU-Indonesian cooperation.
On July 13, 2025, the European Union (EU) announced a significant political agreement with Indonesia concerning a free trade partnership. This milestone was confirmed by EU Commission President Ursula von der Leyen following her meeting with Indonesian President Prabowo Subianto in Brussels. During the announcement, von der Leyen underscored the growing importance of strengthening international relationships amidst increasing economic uncertainties and geopolitical tensions. "We live in a turbulent time, and when economic uncertainty is coupled with geopolitical instability, partners like us must come closer together. So today, we take a big step forward in our partnership," she stated, emphasizing the strategic nature of this agreement.
The political agreement signifies a positive shift in EU-Indonesian relations, reflecting both parties' commitment to enhance trade cooperation and mutual understanding in a rapidly shifting global landscape. As the EU seeks to bolster its economic ties in Southeast Asia, this partnership is deemed essential for navigating current challenges in global trade and economy.