Indonesia and the European Union are set to officially sign a landmark trade agreement in Bali on September 23, 2025, as announced by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto. Known as the Comprehensive Economic Partnership Agreement (CEPA), the deal aims to significantly boost trade flows between the two parties. It includes provisions to remove tariffs on 80% of Indonesia's exports to the EU, reduce non-tariff barriers, and increase market access for EU products—especially in agriculture and manufactured goods.
In 2024, trade between Indonesia and the EU amounted to about USD 30.1 billion, with Indonesia enjoying a trade surplus of USD 4.5 billion. Key exports to the EU include palm oil, footwear, textiles, nickel, and copper ore. Both sides are pushing for rapid ratification so the agreement could take effect by late 2026 or 2027. The pact is seen not just as a trade opportunity but also a way to respond to global economic shifts—such as changing trade policies in the U.S.—and to strengthen Indonesia’s position in the global market.
