On 23 September 2025, the EU and Indonesia reached a major milestone: the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA). Together, these agreements will deepen economic ties, strengthen resilience, and create a strategic partnership between two markets with over 700 million consumers.
Why it matters
- Lower costs for EU exporters: The deal removes tariffs on 98.5% of goods, saving EU companies an estimated €600 million each year.
- More choice for Indonesian consumers: The agreement opens the door to 285 million people gaining better access to European products.
- Protection of traditions and brands: 221 European and 72 Indonesian geographical indications (GIs) will be safeguarded, alongside stronger trademark protection to combat counterfeiting.
- New opportunities: Sectors such as electric vehicles, pharmaceuticals, and electronics will see increased investment flows and closer supply chain integration.
- Support for farmers: EU agri-food exports, from dairy to processed foods, gain wider access while sensitive products like rice and sugar remain protected.
A deal with sustainability at its core
The CEPA embeds commitments to the Paris Agreement and promotes trade in renewable energy and low-carbon technologies. It also sets up structured cooperation on environmental issues, including sustainable palm oil.
Indonesia’s position as a leading producer of critical raw materials adds another dimension. The deal ensures more secure and predictable supply chains for the EU’s green and digital sectors.
What happens next
Before the agreements take effect, the texts will go through legal review and translation, followed by approval from the EU Council and the European Parliament. Once both sides ratify, the CEPA and IPA can officially enter into force.
These developments create both opportunities and obligations for companies trading between Europe and Indonesia. If you want to explore what the agreement could mean for your business, send us a message, our team is ready to support you in turning these changes into practical advantages.
For more details, please refer: European Commission