The Socialists and Democrats in the European Parliament welcome the expected signing on Tuesday of the Comprehensive Economic Partnership Agreement (CEPA) between the European Union and Indonesia, Southeast Asia’s largest economy.

In a time of growing geopolitical uncertainty and shifting alliances, this agreement marks a strategic milestone for the EU in diversifying its partnerships and securing sustainable trade relationships beyond traditional allies.

Indonesia, with its vast economic potential, represents a key partner not only for trade but also for securing critical raw materials essential for Europe’s green transition, including nickel, which is vital for batteries and electromobility. However, the S&D Group underscores that this partnership must go hand in hand with strong commitments to combatting deforestation, protecting workers’ rights, and upholding human rights. At a time of growing concerns over human rights in West Papua and the increasing militarisation of Indonesian society, the S&Ds will closely examine the final texts and ensure this partnership truly benefits people and the planet.

Kathleen Van Brempt, S&D vice-president on international trade, and shadow rapporteur on this file said:

“In an increasingly fragmented world, building bridges with new partners like Indonesia is essential. While Indonesia still faces serious challenges, especially on deforestation and human rights, we recognise the clear willingness to move forward and cooperate with the EU.

“Particularly important for us – this agreement includes the Paris Agreement as an essential element, reflecting our commitment to sustainability. But signing CEPA is just the start. We will continue to use our own European tools like the Deforestation Regulation and Carbon Border Adjustment Mechanism to encourage real progress on the ground.

“We expect this deal to help Indonesia leapfrog towards higher environmental and labour standards while securing Europe’s strategic interests.”