Overview

• Indonesia’s Airlangga Hartarto and EU Trade Commissioner Maros Sefcovic initialed the Comprehensive Economic Partnership Agreement in Bali.
• About 80% of Indonesian exports to the EU will face zero tariffs, benefiting sectors such as footwear, textiles, fisheries and palm oil.
• EU exporters are projected to save roughly €600 million per year in duties on goods entering Indonesia, according to the European Commission.
• Negotiations accelerated after US tariff increases under President Donald Trump, with Indonesian goods to the US now taxed at 19%.
• The pact sets a platform for cooperation on trade-related environmental issues, including palm oil, with a promised “special treatment” on deforestation, while NGOs warn of heightened deforestation risks and the deal still awaits approval by Indonesia and all 27 EU member states.