With The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) agreement, it is hoped that access to Indonesian exports to the European Union will be more open, and the competitiveness of Indonesian products will increase. This study aims to examine the potential impact of the IEU-CEPA on the Indonesian economy using quantitative and qualitative methods. The research found that the IEU-CEPA agreement has the potential to create a comprehensive economic reform in Indonesia. Based on the findings of economic model simulations, there is a potential for a significant increase—in terms of output and welfare—both for Indonesia and the European Union, which can result in economic recovery. IEU-CEPA will also strengthen the government’s commitment to a more open trade and investment policy along with other trade agreements, such as the IA-CEPA and RCEP.