Long Awaited Trade Agreement Between Indonesia-EU Finalised

24 Nov Long Awaited Trade Agreement Between Indonesia-EU Finalised

After almost a decade of negotiations, Indonesia and the European Union (EU) have finalised a trade agreement that will eliminate tariffs on the majority of goods traded between two partners.

Approximately 98.5% of EU exports to Indonesia will no longer face import duties, effectively making European products more affordable and available to Indonesian consumers. This includes goods such as cars, dairy, meat, chocolates, pharmaceuticals and bakery items.

In addition, over 90% of Indonesian goods entering the EU market will be duty-free upon implementation, a move that is expected to increase exports of palm oil, coffee, textiles, and footwear.

This agreement will also open investment in strategic sectors such as electric vehicles, electronic and pharmaceuticals and represents the most ambitious trade deal ever reached between the EU and a Southeast Asian economy, providing near-total tariff liberalisation, stronger regulatory alignment, and new cooperation on sustainability, whilst also signalling broader momentum in EU-ASEAN trade engagement.

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