He pointed out that the agreement will open the door to a market of over 450 million people and has the potential to significantly boost trade with the EU, which is currently valued at around US$30 billion (approximately Rp480 trillion).
“I-EU CEPA will create new opportunities for trade and investment that have previously been untapped. It also represents a strategic move to diversify Indonesia’s trade partnerships,” Djiwandono said in Jakarta on Tuesday.
He lauded the completion of the trade agreement between Indonesia and the EU.
Under the agreement, around 80 percent of Indonesia’s export commodities will be subject to zero tariffs. This, he said, is projected to push export growth above 50 percent in the coming years.
“For Indonesia, the deal will strengthen domestic value-added industries geared toward exports, create quality jobs, and stimulate inward investment,” he added.
Djiwandono emphasized that the trade deal reflects Indonesia’s commitment to building equitable, strategic, and mutually beneficial trade relations.
Under President Prabowo Subianto’s leadership, he said, Indonesia’s economic diplomacy will be guided by collaborative principles within the framework of free and fair trade.
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Beyond trade and investment, he pointed to improved people-to-people connectivity, particularly through the EU’s cascade visa policy, which is expected to make it easier for Indonesian citizens to obtain multi-entry Schengen visas
“Human mobility is an integral part of a strategic partnership. Easier access to multi-entry Schengen visas will enhance Indonesian participation in education, research, entrepreneurship, and cultural diplomacy across Europe,” he said.
Djiwandono described the agreement as proof of Indonesia’s consistent commitment to fair and collaborative cooperation amid rising global uncertainty due to geopolitical tensions, the threat of trade wars, and the trend of deglobalization.
“While some may pursue confrontational and protectionist policies, the administration under President Prabowo demonstrates that cooperation based on mutual respect and benefit is the best path to shared prosperity,” he said.
Related news: I-EU CEPA completion strategic economic achievement: govt
Translator: Bagus, Azis Kurmala
Editor: Rahmad Nasution
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