After almost ten years of negotiations, the European Union and Indonesia officially signed the Comprehensive Economic Partnership Agreement (CEPA) on 23 September 2025. The CEPA is intended to stimulate sustainable growth and a closer strategic partnership between the EU and Indonesia.
Tariffs will be largely abolished
The agreement provides for the almost complete abolition of tariffs on EU goods imported into Indonesia, particularly for cars and agricultural products. At the same time, tariffs on around 80 per cent of Indonesian exports to the EU will be reduced, including important products such as palm oil, fishery products and textiles.
Ratification and entry into force
The CEPA will only enter into force after ratification by the parliaments of the EU Member States, the European Parliament and the Indonesian Parliament. This is expected to take place on 1 January 2027.
Link:
EU and Indonesia conclude negotiations on free trade agreement
Source: