This study aims at measuring the potential impact of a CEPA on the trading of goods and services between the EU and Indonesia, and at addressing the issues that are considered to be impeding the conclusion of CEPA negotiations. In order to measure the potential impact of a CEPA on merchandise trade, this study looks at the tariff structures of both economies, and evaluates the potential impact of tariff elimination on the quantities of merchandise that both Indonesia and the EU import from each other. When looking at the services sector, this study conducts a descriptive analysis using data on cross-border trade, commercial presence, and FDI in services. The study also looks at recent developments in investment between the EU and Indonesia.