A historic achievement was achieved following the signing of the Indonesia-European Union trade agreement (IEU-CEPA), which provides tariff-free or zero percent access for crude palm oil (CPO) exports to the European market. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that almost all Indonesian commodities, including palm oil, will receive tariff-free preferential treatment when the agreement comes into effect estimated to be in late 2026 or early 2027.

This step also reduces pressure from strict EU regulations, such as the European Union Deforestation Regulation (EUDR), which was previously considered a major obstacle to Indonesian palm oil exports. With the IEU-CEPA, Indonesia's diplomatic commitment is considered successful in creating a fairer and more open export space for nationally strategic commodities. However, non-tariff challenges remain. Paspi Executive Director Tungkot Sipayung cautioned that issues such as quota mechanisms, environmental certification, and potential retaliatory regulations need to be a focus for this momentum to truly yield long-term benefits.

Source:
https://sawitindonesia.com/ekspor-sawit-indonesia-bebas-hambatan-ke-pasar-eropa/