A Historic Breakthrough: Indonesia-European Union Trade Agreement! Written on . Posted in -.
On September 23, 2025, The indonesia -European union Comprehensive Economic Partnership Agreement (IEU-CEPA) was signed by both parties, marking a new milestone in economic relations. The Agreement eliminates up to 98% of total tariffs under IEU-CEPA, removing nearly all trade barries for goods and services, paving the way for increased invesment.
Coordianting Minisrter for Economic Affairs, Airlangga Hartarto, Expressed hope that this agreement will boost Indonesia's national income by 2.8 billion US dollar, create new jobs and contibute to poverty reduction. He noted taht the agreement will have a direct impact on five million workers in labor-intensive sector, particulary in industries such as plam oil, coffe, textiles and garments, foootwear, and furniture customs authorities in facilitating trade.
For sector that have long faced bureaucratic barries in accessing European markets, this agrement wil benefit both sides and strongly support Indonesia's micro,small, and medium enterprises (UMKM). As a step toward greater export diversification, IEU-CEPA will also open opportunities for Indonesia to export more high-tech products, including smarthphone and telecomunications equipment.
The agreement further opens invesment opportunities in developing Indonesia's electic vehicle (EV) ecosystem, Considering the European Union's strong interest in Indonesia mineral resouces and its growing EV industry. IEU-CEPA will connect 723 million people across regions , with an economic value of more that 21 trillion US dollar.
The agrement is expected to take effect on January 1, 2027, after ratification by both parliaments. The goverment aims to increase Indonesia export to the European Union by 2.5 times within five years implementations, particularly in labor -sensitive sector.
Contact Us
PT Samyang Indonesia
Komp. Ruko Puri Delta Mas, Jl. Bandengan Selatan No. 21, Block A No. 20,
Pejagalan, Penjaringan, North Jakarta, Jakarta 14450, Indonesia
Phone: +62 21 2266 4480
Email:
Business Hours:
Monday – Friday, 08:30 AM – 05:30 PM (WIB)