After almost ten years of negotiations, the European Union and Indonesia officially signed the Comprehensive Economic Partnership Agreement (CEPA) on 23 September 2025.
Customs duties will be largely abolished
The agreement provides for the almost complete abolition of customs duties 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, fisheries 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.
Economic and sustainable prospects
The agreement strengthens trade relations between the two partners, opens up new economic opportunities and contains provisions on environmental and social standards that are in line with the Paris Climate Agreement. The CEPA thus provides impetus for sustainable growth and a closer strategic partnership between the EU and Indonesia.
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EU and Indonesia conclude negotiations on free trade agreement
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