It is a great pleasure to welcome you here in the Berlaymont in Brussels. This is our first meeting and hopefully the first of many, because Europe and Indonesia have a lot in common. We are both vibrant and diverse democracies. As a matter of fact, Indonesia's national motto is Unity in Diversity, and ours is United in Diversity. We share common values and ambitions. For example, we are both committed to a clean energy transition that leaves no one behind. And I am so glad that our Just Energy Transition Partnership is a success.
Dear Mr President,
We are living in turbulent times. And when economic uncertainty meets geopolitical volatility, partners like us must come closer together. So today we are taking a big step forward in this partnership, and we are doing so in three key areas.
First: Trade. I am pleased to report that we have just reached a political agreement on an ambitious free trade agreement. It is a Comprehensive Economic Partnership Agreement, or CEPA as we will call it. After ten years of negotiations, we have achieved a breakthrough. So, Mr President, I want to thank you for your leadership. Together, we are sending a strong signal about the importance of predictable, long-term partnerships. Partnerships that are built on trust, reciprocity, transparency and shared values. This new trade agreement will bring great opportunities to both our people. Indonesia is one the largest economies in the world, with a GDP of EUR 1.2 trillion; it is a leading supplier of goods that are vital for the digital and green transitions; and it represents a growing market of over 287 million people. Together, we represent a market of 730 million people. Indonesia is also the ASEAN country with the largest economy. But, today, it is only the EU's 5th trade partner in the region, and the EU's 5th largest recipient of Foreign Direct Investment among the ASEAN countries. So, the untapped potential of our trade relationship is great and therefore this agreement comes at the right time. The new agreement will now open new markets and create more opportunities in key industries. Businesses active in agriculture, automotive, and services will massively benefit from it. This agreement will also help strengthen the supply chains of critical raw materials that we need to power the clean and digital transitions. But we want more than just 'secure supply', we want responsible supply. That means respect for the environment, respect for local communities, and a clear focus on good jobs and local value creation. This is Europe's way of doing business – you can count on this.
My second point is on geopolitics and security. In times of global challenges like these, partners must strengthen their ties. Europe and Indonesia share a deep commitment to peace, stability, and a rules-based international order. So today, we discussed raising our relationship to the level of a Strategic Partnership. This would mean a long-term commitment, based on trust, reciprocity, and mutual benefit. And it would complement the important work we are doing together as part of the EU-ASEAN relations. So, we have launched the discussion. I sincerely hope we will reach this important milestone together.
My third and last point is on the connections between our people. They should be the first to benefit from our stronger ties. So I am pleased to announce that the European Commission has adopted a decision on the visa cascade. It means that from now on, Indonesian nationals visiting the EU for a second time will be eligible for multi-entry Schengen visas. This will make it easier to visit, invest, study and connect. In short, we are building a bridge between our societies.
Mr President,
Thank you again for coming. The message we sent today is powerful and clear. In hard times, some turn inward towards isolation and fragmentation. Europe and Indonesia are choosing a different path. One of openness, partnership and shared opportunity. I now look forward to swiftly concluding our free trade agreement.
You are always welcome here, and you can count on Europe.
