The EU and Indonesia’s CEPA, signed in 2025, eliminates tariffs on 98% of EU products, enhances services, digital trade, and investment, boosting competitiveness and trade opportunities significantly.
EU-Indonesia CEPA Agreement Overview
In September 2025, the European Union and Indonesia finalized the Comprehensive Economic Partnership Agreement (CEPA) after nearly ten years of negotiations. This landmark deal aims to promote closer economic ties by removing tariffs on most bilateral goods, while establishing frameworks for services, investments, intellectual property, and digital trade. The agreement signals a significant step towards enhancing economic cooperation and opening new markets for both parties.
Immediate Trade Benefits and Sector Advantages
The core feature of CEPA is the elimination of tariffs, which is poised to save European exporters over €2 billion annually. In 2023, trade between the EU and Indonesia was around €27 billion, with Indonesia exporting €17 billion to the EU. Industries such as textiles, footwear, coffee, cocoa, and fisheries stand to benefit. The agreement also liberalizes key service sectors like finance, logistics, and telecommunications, providing clearer licensing pathways and fostering a more conducive environment for European firms.
Key Elements and Future Outlook
Tariffs will be lifted on approximately 98% of EU products entering Indonesia, while around 80% of Indonesian exports will enjoy tariff-free access to the EU, either immediately or through phased schedules. As ratification is expected by late 2026 or 2027, businesses have time to strategize and meet origin requirements. Proper sourcing and documentation are essential for manufacturers planning to leverage Indonesia as an export base to qualify under CEPA’s rules from day one.
| This article was first published by ASEAN Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the original article : EU–Indonesia CEPA: Unlocking Market Access and Growth Strategies for Investors
