Indonesia’s new trade imperative is storytelling

Modern trade agreements rarely fail on technical merits. They fail when the public rejects their story.

Sondang Grace Sirait

23 December 20254 min read

As Indonesia accelerates its network of Comprehensive Economic Partnership Agreements (CEPAs) from Europe to North America, mastering the narrative is increasingly becoming an imperative that determines whether these deals endure.

To build supportive domestic narratives, perceptions must be reciprocal.

Indonesia’s ambitions are clear. Its CEPAs with the EU and Canada, its role in ASEAN and the Regional Comprehensive Economic Partnership, and its path towards OECD membership all signal a country demanding greater weight in global value chains. But integration now occurs in a hyper-politicised, digitally crowded arena. The old technical model where governments negotiate, businesses benefit, and the public acquiesces, is obsolete.

Recent history proves the point. The Trans-Pacific Partnership and the EU-US Transatlantic Trade and Investment Partnership didn’t collapse over tariffs but because the public narratives around them, framed as threats to sovereignty and jobs, became politically toxic.

The Indonesia-EU CEPA faces this precise challenge. On paper, it promises deeper trade and sustainability ties. In practice, it faces complex political headwinds. The European discourse is dominated by environmental and ethical concerns, particularly around palm oil and deforestation. In Indonesia, these are often perceived as protectionist barriers disguised as ethical concerns, hindering fair access for its commodities. Bridging this gap requires a public narrative that connects facts to feelings: positioning Indonesia as an essential partner in building sustainable supply chains and Europe as a collaborator respecting Indonesia’s development trajectory.

The Indonesia–Canada CEPA operates in similar territory, especially concerning critical minerals. Canada brings intense public scrutiny of Indonesia’s extraction and labour practices. Indonesia brings determined industrial ambitions and expectations of policy space for downstream processing. Without a story that reconciles these positions, the agreement risks being picked apart by interests on both sides.

Economic partnership without cultural familiarity risks becoming purely transactional.

The IndonesiaAustralia CEPA demonstrates what happens when substance runs ahead of public understanding. When the agreement entered into force in 2021, years of technical cooperation had already built substantial foundations, but public familiarity with the agreement’s potential was still developing. Polling showed large perception gaps: fewer than half of Australians viewed Indonesia as a democracy, while only a small share of Indonesians considered Australia their closest partner.

The Katalis initiative, established to support implementation of the Australia–Indonesia agreement, worked right from the start to ensure narrative catch up with policy. The shift began when cooperation was translated to human-scale stories. Consider Indonesian students graduating from an Australian-certified aged care program in Jakarta. That single image made abstract mobility provisions real, demonstrating shared standards and creating a tangible mutual benefit in a sector the public understands.

Katalis also regularly showcased Indonesian SMEs entering Australian markets and Australian training providers expanding reach into Indonesia, curating stories of reciprocal opportunity. This consistent, multi-sector and multi-channel storytelling didn’t just inform. The strategy reframed the story and demonstrated that the agreement was a platform for job-ready skills, business growth, and mutual resilience.

Southeast Asia’s online population, exceeding 460 million with Indonesia at its core, has turned economic diplomacy into a contest for attention. Deals framed only in GDP projections or tariff schedules can appear remote and elitist. In that vacuum, misinformation on issues like foreign workers, environmental obligations, or market access for sensitive sectors can spread rapidly.

This environment requires more than a social media account. It demands storytelling grounded in lived experience: small businesses entering new supply chains, farmers securing higher-value markets, or students accessing recognised qualifications. These stories humanise policy and make economic openness feel inclusive rather than imposed.

To build supportive domestic narratives, perceptions must be reciprocal. Partners in Europe and North America need to update outdated impressions of Indonesia as a passive commodity exporter. This is a G20 economy with a fast-growing tech sector and clear industrial policy goals. Conversely, Indonesia must frame Australia, Canada, and the EU not as donors or mere buyers but as collaborators in industrial upgrading and shared prosperity.

The narrative gaps extend beyond commerce. The parallel decline of Indonesian language studies in Australian universities during IA-CEPA’s rollout (2020–25) was a telling warning. Economic partnership without cultural familiarity risks becoming purely transactional. Lasting coordination requires a bedrock of public understanding.

To avoid past mistakes, narrative strategy must be embedded in economic diplomacy from the outset. Three shifts are critical.

First, integrate communications into the negotiation core. Explaining the “why” of a deal cannot be an afterthought. It must be a parallel track alongside the legal text, anticipating public concerns in real time. Second, co-author sustainability narratives. These must reflect Indonesia’s agency and ambitions, not merely compliance with external dictates. The story must be one of joint solution-building. Third, centre human-scale proof points. Focus storytelling on sectors where benefits are visible and relatable: skills development, digital services, agriculture, and health.

Trade agreements are political documents long before they are economic ones. Their longevity depends on whether citizens recognise themselves in the opportunities they create. For Indonesia’s ambitious CEPA agenda, the technical work, while monumental, is only half the battle. The other half is telling its story and ensuring it’s a story in which people at home and abroad believe.

About the author

Sondang Grace Sirait

Sondang Grace Sirait is a senior strategic communicator and policy advocate with 20+ years’ experience shaping public policy messaging, supporting multisector reform programs, and driving ecosystem engagement across Southeast Asia.

Topics

Indonesia