Commission presents Council with ambitious Indonesia agreements

These comprehensive, forward-looking and mutually beneficial agreements mark a key milestone in delivering the EU's strategy to diversify its partnerships, strengthen trade and investment links with key global partners and create new export opportunities, while making supply chains for energy and raw materials more secure.

Indonesia, with a population of 280 million people, is one of the largest economies in the strategically important Indo-Pacific region. The CEPA and IPA are modern and tailored agreements, designed to bring added value and clear benefits to both European and Indonesian businesses.

Together, these agreements will help the EU and Indonesia deepen their partnership by:

• Removing import duties on 98.5% of tariff lines and simplifying export procedures for EU goods to Indonesia, including agri-food exports.
• Opening up new opportunities for EU investment in Indonesia, particularly in strategic sectors such as electric vehicles, electronics and pharmaceuticals;
• Ensuring the respect and fair compensation for Intellectual property rights, including the protection of 221 EU geographical indications ('GIs').
• Strengthening predictable, reliable and sustainable supply chains, including through reduced tariffs and facilitating exports of critical raw materials.

Next steps

With its proposals for signature and conclusion of the CEPA and the IPA, the Commission is seeking Council's approval to sign the agreements which will then require European Parliament's consent, before conclusion and entry into force. The Indonesian authorities are in parallel going through their own internal ratification procedures.

For more information

EU-Indonesia agreements

EU and Indonesia conclude negotiations on free trade agreement