EU and Indonesia Forge Ambitious Free Trade Agreement Amid Global economic Volatility

BRUSSELS – In a significant move to bolster economic ties amidst a backdrop of global uncertainty, European Union chief Ursula von der Leyen and Indonesian President Prabowo Subianto announced a “political agreement” on Sunday, July 13, to finalize a long-anticipated free trade deal.

“We’re living in turbulent times and when economic uncertainty meets geopolitical volatility, partners like us must come closer together,” von der Leyen stated to journalists in Brussels. “So today we’re taking a big step forward in this partnership.” She expressed her pleasure in reporting the achievement of an “ambitious Free Trade Agreement.”

The 27-nation European bloc and Southeast Asia’s largest economy have been engaged in negotiations since 2016, aiming to establish a pact that is projected to stimulate increased trade and investment between the two entities.

The European Commission characterized Sunday’s accord as a “decisive milestone” toward the finalization of the agreement. The deal is scheduled for conclusion in September, with EU trade chief Maros Sefcovic and Indonesia’s chief economic minister Airlangga Hartarto expected to sign off.

“There’s a lot of untapped potential in our trade relationship,” von der Leyen added. “And therefore this agreement comes at the right time, because the new agreement will open new markets