THE European Union has finalised negotiations on a free trade agreement after more than nine year, reported German news agency dpa.
EU Trade Commissioner Maros Sefcovic 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 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,” Sefcovic 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% car import tariff, the agreement creates fresh opportunities for EU automotive exports and electric vehicle investments,” Sefcovic 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.
“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. — Bernama
