Overview

• EU Trade Commissioner Maros Sefcovic and Indonesian Economic Affairs Minister Airlangga Hartarto signed the trade pact and a parallel investment protection deal in Bali.
• EU officials project about €600 million in annual duty savings for EU exporters, with roughly 80% of Indonesian shipments becoming tariff-free once the accord takes effect and investment opened in sectors such as electric vehicles, electronics and pharmaceuticals.
• The agreement includes a palm-oil protocol; the EU says it is designed to support trade in sustainable palm oil through a dialogue platform, and palm oil will receive zero tariffs within a defined quota as details of the full text are prepared for publication.
• Environmental groups warn of deforestation risks, and exporters face the EU Deforestation Regulation’s due‑diligence and traceability requirements that experts say could disadvantage smallholders without a nationally recognized system.
• Both sides now conduct legal checks and translations before ratification by EU member states, the European Parliament and Indonesia, with entry into force expected around 2027, while the European Commission said it will propose another one‑year delay to the EUDR due to IT problems.