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EU and Indonesia Sign Trade Deal and Investment Pact, Slashing Tariffs and Securing Raw Materials

Final EU approvals are required before the pact takes effect.

Overview

  • EU Trade Commissioner Maroš Šefčovič and Indonesia’s economic minister Airlangga Hartarto signed the agreements in Bali after nearly a decade of talks.
  • The package removes over 98% of tariffs, with Indonesia expecting duties on about 80% of its exports to the EU to be eliminated.
  • Brussels says the deal ensures stable access to critical inputs such as nickel for Europe’s clean-technology and steel industries.
  • The agreements will only enter into force after sign-off by EU member-state governments and the European Parliament.
  • Nickel export rules and environmental safeguards remain contentious; German industry urges lifting Indonesia’s nickel export ban, and EU negotiators emphasized sustainability standards.