Indonesia, EU Seal Landmark Economic Agreement
(MENAFN) On Tuesday, Indonesia and the European Union officially signed a landmark Comprehensive Economic Partnership Agreement (CEPA) in Bali, marking a significant step in enhancing trade and economic ties.
"From the first round of negotiations in Brussels in 2016, to today in Bali, this nine-year journey has brought us to a historic milestone that reflects our joint commitment to an open, fair, and sustainable economy through CEPA," said Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto in a statement. He was joined by European Commissioner for Trade and Economic Security Maros Sefcovic, who echoed similar sentiments.
The agreement focuses on trade liberalization across goods, services, and investment, with around 98% of tariff lines receiving preferential treatment. Indonesia's major exports—palm oil, textiles, footwear, and processed agricultural products—are poised to benefit significantly from the deal. Additionally, new opportunities are expected to emerge in sectors like electronics, high-tech goods, and digital trade.
Sefcovic highlighted the potential for European businesses, stating that the deal opens up new avenues in Indonesia's rapidly growing market. He pointed to sectors such as agri-food and advanced manufacturing, with particular emphasis on automotive and electric vehicle investments.
Indonesia now becomes the third Southeast Asian nation, following Singapore and Vietnam, to finalize a CEPA with the EU. The agreement is set to take effect in early 2027.
"From the first round of negotiations in Brussels in 2016, to today in Bali, this nine-year journey has brought us to a historic milestone that reflects our joint commitment to an open, fair, and sustainable economy through CEPA," said Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto in a statement. He was joined by European Commissioner for Trade and Economic Security Maros Sefcovic, who echoed similar sentiments.
The agreement focuses on trade liberalization across goods, services, and investment, with around 98% of tariff lines receiving preferential treatment. Indonesia's major exports—palm oil, textiles, footwear, and processed agricultural products—are poised to benefit significantly from the deal. Additionally, new opportunities are expected to emerge in sectors like electronics, high-tech goods, and digital trade.
Sefcovic highlighted the potential for European businesses, stating that the deal opens up new avenues in Indonesia's rapidly growing market. He pointed to sectors such as agri-food and advanced manufacturing, with particular emphasis on automotive and electric vehicle investments.
Indonesia now becomes the third Southeast Asian nation, following Singapore and Vietnam, to finalize a CEPA with the EU. The agreement is set to take effect in early 2027.
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