The European Union continues to expand its trade relationships and has reached a new comprehensive trade deal with Indonesia, following positive discussions between European Commission President Ursula von der Leyen and Indonesian President Prabowo Subianto.
Commenting on the deal, von der Leyen said that “we have made a commitment to double down on diversification and partnerships, to further support EU jobs and boost growth,” mentioning also that “our deal with Indonesia creates new opportunities for businesses and farmers in a major and growing economy.” The Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA) between the EU and the Southeast Asian country will still need approval from the European Council and Parliament.
Under the deal, the EU and Indonesia set up a more stable and sustainable supply chain for raw materials. Additionally, the removal of import duties for all existing tariff lines for EU goods exported to Indonesia will allow EU companies to hold full ownership in the country, particularly in key sectors such as computers and telecommunications. Additionally, the deal will enhance intellectual property protection for EU goods and brands.
The cornerstone is the elimination of tariffs on agricultural exports, including dairy products, meats, fruits, vegetables, and processed foods. “Our producers will now enjoy preferential access to a market of 285 million consumers, who will have even greater opportunities to discover our high-quality food,” said Christophe Hansen, the EU commissioner for agriculture and food.
As for Indonesian exports, they will remain under the current system with quotas for sensitive products. Finally, 221 EU and 72 Indonesian agricultural and food geographical indications will be fully covered.
Ever since the second term of Donald Trump began, with severe tariffs imposed on even close allies like the EU, the Commission has been pushing to diversify its trade deals with other parts of the world, often pursuing long-term agreements like those with Latin American countries or Indonesia. The idea of creating a solid trade-based system with other countries was confirmed by the words of Commissioner for Trade Maroš Šefčovič, who handled the final phase of negotiations with Jakarta. He said the “in today’s unpredictable global economy, trade relationships are not merely economic tools – they are strategic assets that signal trust, alignment, and resilience.”
