Over the last decades, the European Union and Indonesia have successfully strengthened and broadened their cooperation, which is underpinned by common goals and mutual interests. As members of the G20, they are allied with other nations to address global financial, socio-economic, and development issues. Since 2014, they have elevated their bi-lateral relationship to new heights with the entry into force of the Partnership Cooperation Agreement to foster inclusive economic development, promote good governance, protect the environment, counter the effects of climate change, support civil society and promote basic education among other objectives.
Some of the mutual benefits of the enhanced cooperation have materialised though the expansion of trade and investments. Trade in goods between the two partners rose about EUR 15 billion in 2009 to EUR 24 billion in 2019 , an average increase of 4.8% per annum. Direct investment flows from the EU to Indonesia grew at a very rapid pace during the past few years. In 2018 the EU was the second largest source of investment to Indonesia with about EUR 34 billion worth of Foreign Direct Investment stock. In view to make create even more trade as well as investments opportunities for businesses and people in the two economic zones, the EU and Indonesia are negotiating a free trade agreement, also known as the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) since 2016.