Hanoi (VNA) – Indonesian President Prabowo Subianto and President of the European Commission Ursula von der Leyen announced on July 13 that the two sides have reached a "political agreement" to conclude a long-awaited free trade agreement (FTA).
The announcement was made after a meeting between the EC leader and President Subianto, who is on his first European tour since taking office last October, with Brussels as his first stop.
Speaking at a joint press conference after the meeting, the EC President expressed her satisfaction with reaching a political agreement with Indonesia, calling it a major step forward in the partnership between the EU and Indonesia amid ongoing global economic fluctuations. According to her, the agreement comes at the right time as there is a great deal of untapped potential in their trade relations.
She further stated that once the EU-Indonesia FTA negotiations are completed, it will create more opportunities for both sides in key industries such as agriculture, automotive manufacturing, services, and business activities.
For his part, President Subianto described reaching a political agreement with the EU as a "breakthrough" after 10 years of negotiations. He affirmed that Indonesia considers Europe a very important trading partner.
The EU and Indonesia launched the negotiation on a Comprehensive Economic Partnership Agreement (CEPA) in 2016. Last year, bilateral trade reached around 30.1 billion USD, making the EU the fifth-largest trading partner of Indonesia./.
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