The European Union and Indonesia have formally signed the Comprehensive Economic Partnership Agreement (IEU-CEPA) and an Investment Protection Agreement. This milestone deal, concluded on 23 September 2025 after years of negotiation, will liberalise trade in goods and services, boost investment, and grant EU companies privileged access to the Indonesian market. Once ratified—expected by 2027—the agreement will remove import duties on 98.5% of tariff lines, simplify export procedures for key sectors (such as automotive, chemicals, machinery, and agri-food), and save EU exporters around €600 million annually, making European products more affordable for Indonesian consumers. 

Beyond economic benefits, the CEPA sets a strong foundation for sustainable growth. It integrates climate and environmental commitments aligned with the Paris Agreement, opens new opportunities in renewable energy, carbon technologies, and critical raw materials, and protects intellectual property for businesses of all sizes. The agreement also establishes a platform for ongoing dialogue on trade-related environmental issues, supporting secure and sustainable supply chains vital to the green and digital transitions. With legal texts now under final review, the CEPA stands as a testament to both sides’ commitment to openness, transparency, and a rules-based system.

EBI will provide more information once the final draft agreement is published.

More information here.