Indonesia is set to significantly boost its palm oil exports to the European Union throughout the second half of 2025, following the conclusion of the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU‑CEPA). Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Finance Ministry, confirmed that palm oil has been included in the initial implementation phase. With tariffs eliminated on 80% of Indonesian exports under the new trade agreement, February anticipates palm oil to serve as a major catalyst for Indonesia’s trade and economic growth in the upcoming semester.
The agreement, finalized after 19 rounds of negotiations across nearly a decade, not only eliminates custom duties but also alleviates non‑tariff barriers, making Indonesian palm oil cleaner and more competitive in the European market. East Nucleus of Economic Affairs, Airlangga Hartarto, emphasized that this milestone is especially timely amidst global trade uncertainties. The government is optimistic that with IEU‑CEPA paired with recent tariff reductions by the U.S., Indonesia’s export momentum will remain strong, reinforcing the palm oil industry as a major economic driver
