EU and Indonesia agree to trade deal
Jakarta/Brussels (dpa) – The European Union and Indonesia finalised negotiations on a free trade agreement after more than nine years, the EU said on Tuesday.
EU Trade Commissioner Maroš Šefčovič and Airlangga Hartarto, Indonesia’s coordinating minister for Economic Affairs, signed a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement in Bali.
This will see customs duties on EU goods including car parts and agricultural products imported into Indonesia be almost completely abolished.
“In today’s unpredictable global economy, trade relationships are not merely economic tools – they are strategic assets that signal trust, alignment, and resilience,” Šefčovič said. “Key EU sectors such as agri-food and advanced manufacturing will benefit from greater market access and predictability.”
“Likewise, by gradually removing Indonesia’s 50 percent car import tariff, the agreement creates fresh opportunities for EU automotive exports and electric vehicle investments,” Šefčovič continued. “I am convinced that today’s conclusion of negotiations is just the beginning of an exciting new chapter.”
Airlangga spoke of an important milestone.
“We have made a commitment to double down on diversification and partnerships, to further support EU jobs and boost growth,” European Commission President Ursula von der Leyen said in a statement released on Tuesday.
“Our deal with Indonesia creates new opportunities for businesses and farmers in a major and growing economy,” von der Leyen added. “This also provides us with a stable and predictable supply of critical raw materials, essential for Europe’s clean tech and steel industry.”
The EU is looking to diversify its trade relations amid US President Donald Trump‘s aggressive tariff policy and the threat to supply chains due to the conflicts in Ukraine and Gaza. (23 September)
