EU, Indonesia Sign Comprehensive Economic Partnership Agreement After Nine Years
The EU and Indonesia have signed a comprehensive economic partnership agreement (CEPA) after nine years of negotiations. This deal, signed by EU Commissioner Maros Sefcovic and Indonesia's Coordinating Minister Airlangga Hartarto, is set to reduce or eliminate tariffs on a wide range of products, saving EU exporters an estimated EUR 600 million annually. It also promises greater access to high-quality European products for Indonesian consumers at more affordable prices.
The CEPA, expected to take effect in 2027, is not only about trade but also promotes sustainable development. It encourages investment in renewable energy and green technologies, and establishes a framework for cooperation on environmental and climate issues. The agreement links economic development with social protection and effective environmental governance, marking a significant step forward in the EU-Indonesia partnership.
Following the signing, the EU and Indonesia will carry out a legal review and translation process. Once completed, the CEPA will need to be ratified by the EU Council, the European Parliament, and Indonesia. Notably, as the agreement was concluded at the EU level, no individual EU member state parliaments have ratified or refrained from ratifying it yet.
The EU-Indonesia CEPA, described as comprehensive, advanced, and mutually advantageous, is a turning point in the EU's trade strategy. It promises strong momentum for trade, investment, and sustainable development between the two regions. Once ratified and in effect from 2027, it is expected to bring substantial economic benefits to both sides.
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