EU and Indonesia Conclude Landmark Trade and Investment Agreements

The EU and Indonesia have finalised negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA), following the political agreement reached in July by President von der Leyen and President Prabowo Subianto. Talks were led for the EU by Commissioner Maroš Šefčovič, currently in Indonesia to engage with businesses ahead of ratification.

These agreements mark a major step in the EU’s diversification strategy, opening new export opportunities, strengthening supply chains for energy and raw materials, and deepening ties with one of Asia’s largest economies.

President von der Leyen said: “Our deal with Indonesia creates new opportunities for EU businesses and farmers, while ensuring a stable supply of critical raw materials vital for Europe’s clean tech and steel sectors.”

Key benefits of the CEPA:

• Tariff removal on 98.5% of EU exports, saving around €600 million annually.

• Greater access for EU services and investments in sectors like EVs, electronics, and pharmaceuticals.

• Strong protections for intellectual property and 221 EU + 72 Indonesian geographical indications.

• Safeguards for sensitive EU agri-food products.

  
  

The agreement also includes a strong sustainability pillar, embedding the Paris Agreement, promoting renewable energy and low-carbon technologies, and enhancing cooperation on climate and environmental issues.

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