JAKARTA/BRUSSELS, Sept 23 — The European Union (EU) and Indonesia finalised negotiations on a free trade agreement after more than nine years, the EU said on Tuesday, reported the German News Agency (dpa).
EU Trade Commissioner Maroš Šefčovič and Indonesia's Economic Affairs Coordinating Minister Airlangga Hartarto signed a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement in Bali.
This will result in customs duties on EU goods — including car parts and agricultural products — being almost entirely eliminated when imported into Indonesia.
"In today's unpredictable global economy, trade relationships are not merely economic tools – they are strategic assets that signal trust, alignment, and resilience. 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 per cent car import tariff, the agreement creates fresh opportunities for EU automotive exports and electric vehicle investments. I am convinced that today's conclusion of negotiations is just the beginning of an exciting new chapter," Šefčovič said.
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. Our deal with Indonesia creates new opportunities for businesses and farmers in a major and growing economy
"This also provides us with a stable and predictable supply of critical raw materials, essential for Europe's clean tech and steel industry," European Commission President Ursula von der Leyen said in a statement on Tuesday.
The EU is looking to diversify its trade relations amid United States President Donald Trump's aggressive tariff policy and the threat to supply chains due to the conflicts in Ukraine and Gaza.
