The European Union (EU) has softened its stance on enforcing the EU Deforestation Regulation (EUDR) toward Indonesia, ahead of the expected completion of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA), according to Trade Minister Budi Santoso.
“As the IEU-CEPA nears completion, we’ve observed a more flexible position from the EU, including on the EUDR,” Santoso said in Brussels on Saturday during President Prabowo Subianto’s state visit to Belgium, as seen on the Presidential Secretariat’s YouTube channel on Sunday.
He said this shift likely reflects the EU’s willingness to build a long-term partnership with Indonesia.
Santoso noted that the length of negotiations stemmed from complex bargaining dynamics, as both sides sought a mutually beneficial agreement.
In light of recent progress, Indonesia said it is now focusing on finalising the IEU-CEPA as a new framework for bilateral trade and cooperation, he added.
“Everything is settled. Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that the negotiation process is complete. The agreement’s substance has been finalised,” Santoso said.
He added that President Prabowo is expected to officially announce the agreement’s completion soon.
With the finalisation of the IEU-CEPA, Indonesia will gain greater access to European markets and new export opportunities, he said.
“This will be an alternative market for us,” he added, noting that the EU’s total imports from the global market reached US$6.6 trillion, compared to US$3.3 trillion by the United States.
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