Following the political settlement reached on 13 July by President von der Leyen and President Prabowo Subianto, the EU and Indonesia finalised negotiations for a Complete Financial Partnership Settlement (CEPA) and an Funding Safety Settlement (IPA).
These complete, forward-looking, and mutually helpful agreements are a key milestone in delivering on the EU’s technique of diversification and partnerships, strengthening commerce and funding ties with a serious economic system, and creating new export alternatives and safer provide chains for vitality and uncooked supplies.
The CEPA will considerably profit European farmers, bringing down tariffs on agri-food merchandise and defending conventional EU merchandise, in addition to key industrial sectors, such because the automotive, chemical compounds, and equipment sectors. In all, EU exporters will avoid wasting €600 million a yr in duties paid on their items coming into the Indonesian market, and European merchandise shall be extra reasonably priced and accessible to Indonesian shoppers.
The settlement will give EU corporations privileged entry to the Indonesian market by eradicating import duties on 98.5% of tariff strains and simplifying procedures on EU items exports to Indonesia, together with key exports equivalent to automobiles and agri-food merchandise.
The deal will give EU farmers a lot better alternatives to promote their produce in Indonesia due to the elimination of tariffs on main EU exports equivalent to dairy merchandise, meats, fruit and greens and a variety of processed meals.
It is going to additionally defend 221 EU, and 72 Indonesian, agricultural and meals geographical indications (‘GIs’). Lastly, it protects delicate agri-food merchandise equivalent to rice, sugar and contemporary bananas the place present tariffs are maintained and limits the entry to the EU marketplace for different delicate merchandise by way of fastidiously calibrated quotas.
September 22, 2025/ European Fee/ European Union.
https://ec.europa.eu
