Šefčovič: The conclusion of trade negotiations with Indonesia is great news for the EU
Brussels – The European Union will conclude an important free trade agreement with Indonesia on Tuesday after nine years of negotiations, which is good news for Europeans. In an exclusive phone interview with TASR, European Commissioner for Trade and Economic Security Maroš Šefčovič confirmed this on Monday (September 22).
Maroš Šefčovič confirmed that on Tuesday he will finalize the economic partnership agreement with Indonesian Minister for Economic Affairs Airlangga Hartarto. Both discussed the final points of the contract on Monday. “This is a free trade agreement that we consider groundbreaking because it involves a country with 283 million inhabitants, the largest Muslim country, and the largest country in the ASEAN association,” Šefčovič stated.
He noted that the current mutual trade between both parties, which amounts to 28 billion euros annually for goods and nine billion euros for services, falls short of the potential indicated by the EU’s trade agreement with Vietnam and trade flows with Thailand and Malaysia, which are smaller than Indonesia.
The EU has managed to eliminate 98.5 percent of all customs tariffs to zero
He pointed out that from Slovakia’s perspective, it is important that the EU has managed to eliminate 98.5 percent of all previous tariffs to zero.
“For the automotive industry, this is important news because tariffs will go from 50 percent to zero. This also applies to auto parts. In the machinery industry, it will go from 30 percent to zero,” Šefčovič explained. He claims that this is good news for farmers as the Union consistently exports agri-food products to Indonesia worth about one billion euros annually. The agreement means that the previously high tariffs of 20 to 30 percent will be gradually eliminated, while the EU will protect the interests of European farmers for “sensitive” products such as sugar, rice, or eggs and guarantee protection for over 220 products with protected geographical indications.
“We believe that European exports to Indonesia can grow by more than 30 percent in a short time,” he added.
The Slovak Commissioner stated that an important business forum with the participation of chambers of commerce was convened on the occasion of the agreement’s conclusion. He expressed hope that this new political and trade framework created for entrepreneurs on both sides will translate into real contacts. Currently, EU exports to Indonesia support around 200,000 jobs.
European exporters will save more than 600 million euros annually on eliminated tariffs
The concluded agreement will save European exporters more than 600 million euros annually just on paid customs duties,” Šefčovič stated, whose mission on behalf of the EU executive will not end on Tuesday in Jakarta: on Wednesday, he has working meetings in Malaysia as part of a tour of Southeast Asia, including with ASEAN countries, and will subsequently travel to Vietnam.
Šefčovič specified that after the signing of the agreement on Tuesday, a process of legal fine-tuning will follow in the EU Council, and subsequently, the agreement will be approved by member states and the European Parliament. The European Commission, according to him, believes that the contract can be ratified and signed during 2026 so that it can take effect from January 1, 2027. (September 23)
