Indonesian Business Community Stands to Benefit from CEPA Breakthrough and Visa Reform with the European Union

The signing of a political agreement on the Indonesia–European Union Comprehensive Economic Partnership Agreement (CEPA) marks a significant turning point for the Indonesian business community. After more than a decade of negotiations, the deal opens one of the world’s largest economic regions to Indonesian products, services, and entrepreneurs.

Simultaneously, the European Commission’s new “visa cascade” mechanism will ease travel to Europe for Indonesian nationals — a move expected to unlock broader access to investment, partnerships, and market exploration across the continent.

What This Means for Indonesian Businesspeople

The CEPA and visa cascade combined will have wide-ranging, practical impacts on Indonesian business actors:

1. Wider Market Access for Exporters

With the removal or reduction of tariffs and non-tariff barriers, Indonesian exporters will gain enhanced access to the EU’s 450+ million consumers, especially in sectors like:

• Palm oil and derivatives (with sustainability compliance)
• Halal food products and seafood
• Textiles and garments
• Furniture, home décor, and crafts
• Digital services and creative economy

“For SMEs and exporters, this is a golden gate into one of the most sophisticated and high-value markets in the world,” said Teguh Anantawikrama, Vice Chairman of KADIN Indonesia.

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2. Increased Investment and Technology Transfer

CEPA creates a predictable and transparent investment climate between Indonesia and the EU. Indonesian businesses can expect:

• More joint ventures and capital inflows from Europe
• Access to green and digital technologies
• Opportunities to partner with EU firms in manufacturing, energy, and logistics

Sectors like renewable energy, sustainable agriculture, EV supply chains, and smart tourism will see accelerated collaboration.

3. Visa Cascade: Simpler Travel for Business Missions

The visa cascade announced by the European Commission means:

• Streamlined Schengen visa applications
• Multi-entry visas valid for longer periods
• Faster processing for repeat travelers, business leaders, and trade delegates

This eliminates one of the long-standing barriers faced by Indonesian entrepreneurs attending:

• Trade fairs and expos in Germany, France, Italy, etc.
• Business matchmaking or investment forums
• Educational and industrial visits to potential EU partners

“Travel is no longer a bottleneck — it’s now a gateway,” said Mayuko Anantawikrama, Vice Chairwoman of IWAPI for Tourism and Trade.

4. Stronger MSME Support and Digital Integration

CEPA includes specific chapters on:

• MSME participation in international trade
• Digital trade facilitation
• Capacity building and technical assistance

For Indonesian MSMEs, this means:

• Exposure to EU quality and sustainability standards
• Easier access to e-commerce partnerships
• Possible mentoring and certification support under CEPA mechanisms

5. Leveling Up to Compete Globally

CEPA is more than a trade agreement — it is a blueprint for transformation. Indonesian business players will need to:

• Strengthen compliance with international standards (e.g. traceability, ESG, GDPR)
• Invest in branding, packaging, and storytelling to appeal to EU consumers
• Embrace digitalization and certification

In return, they will gain credibility, access, and long-term competitiveness in global value chains.

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What to Watch Next

• Ratification process by parliaments of Indonesia and the EU
• Implementation roadmaps and business matching programs
• Visa facilitation guidelines issued by EU member states
• CEPA outreach workshops by KADIN, Ministry of Trade, and EU Delegation

Final Word

“This is the most strategic opening for Indonesian business since our ASEAN agreements. We now have the chance to become not just a supplier, but a global brand,” said an Indonesian industry leader.

With the right preparation, the CEPA and visa cascade could propel Indonesian businesspeople into a new era of global competitiveness, investment partnerships, and strategic positioning in Europe and beyond.