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Following the political agreement reached on 13 July by President von der Leyen and President Prabowo Subianto, the EU and Indonesia finalised negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA).
These comprehensive, forward-looking, and mutually beneficial agreements are a key milestone in delivering on the EU's strategy of diversification and partnerships, strengthening trade and investment ties with a major economy, and creating new export opportunities and more secure supply chains for energy and raw materials.
The CEPA will significantly benefit European farmers, bringing down tariffs on agri-food products and protecting traditional EU products, as well as key industrial sectors, such as the automotive, chemicals, and machinery sectors. In all, EU exporters will save some €600 million a year in duties paid on their goods entering the Indonesian market, and European products will be more affordable and available to Indonesian consumers.
The agreement will give EU companies privileged access to the Indonesian market by removing import duties on 98.5% of tariff lines and simplifying procedures on EU goods exports to Indonesia, including key exports such as cars and agri-food products.
The deal will give EU farmers much better opportunities to sell their produce in Indonesia thanks to the elimination of tariffs on major EU exports such as dairy products, meats, fruit and vegetables and a wide range of processed foods.
It will also protect 221 EU, and 72 Indonesian, agricultural and food geographical indications (‘GIs'). Finally, it protects sensitive agri-food products such as rice, sugar and fresh bananas where existing tariffs are maintained and limits the access to the EU market for other sensitive products through carefully calibrated quotas.
September 22, 2025/ European Commission/ European Union.
https://ec.europa.eu
