European Union and Indonesia finalize negotiations on trade and investment agreements

On September 22, 2025, the European Union and Indonesia concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA). Talks on a free trade agreement had first started in July 2016; the 19th round of negotiations was held in July 2024, followed by intersessional discussions at both the technical and political levels.

In 2024, bilateral trade in goods between the two partners reached €27.3 billion. Indonesia’s exports to the EU totaled €17.5 billion, while EU exports to Indonesia amounted to €9.8 billion. The agreement foresees the elimination of tariffs on more than 98% of tariff lines, covering nearly 100% of trade value. Eighty percent will be liberalized once the agreement enters into force, with liberalization reaching 96% of trade after five years.

The CEPA will also provide direct protection for 221 European and 72 Indonesian Geographical Indications.

Photo credit: Freepik

Source: European Commission