Indonesia and the European Union have finalized the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), offering a 0% tariff on major Indonesian exports, including textiles, footwear, processed foods, palm oil, and its derivatives. This benefit will take effect at the agreement’s Entry Into Force (EIF) stage. The deal covers 98% of tariff lines and 99% of total import value, giving Indonesia a significant competitive edge in EU markets. Products like biodiesel, electronics, fishery goods, and steel are also included.
IEU-CEPA is Indonesia's most comprehensive bilateral trade agreement to date, covering 25 chapters on liberalization, trade facilitation, cooperation, and emerging issues. The agreement was solidified through a letter exchange between Indonesia’s Coordinating Minister of Economic Affairs and the EU Trade Commissioner. Announced during a bilateral meeting between President Prabowo Subianto and EU Commission President Ursula von der Leyen, this deal is expected to boost trade and investment opportunities for both regions.
