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Free Trade Agreements
Update trade agreement between EU and Indonesia (CEPA)
On September 23, 2025, the European Union and Indonesia finalized the Comprehensive Economic Partnership Agreement (CEPA) The CEPA aims to enhance bilateral trade and investment, covering various sectors and establishing a framework for cooperation.
Key Elements of the CEPA:
- Trade in Goods: Tariffs on over 98% of goods will be eliminated, benefiting sectors like agri-food, chemicals, and automotive for the EU, and palm oil and textiles for Indonesia.
- Rules of Origin: Ensures that only products significantly processed in either region benefit from tariff preferences, using self-certification to simplify compliance.
- Customs and Trade Facilitation: Streamlines customs procedures and enhances cooperation to prevent fraud and ensure compliance with safety and intellectual property standards.
- Sanitary and Phytosanitary Measures: Maintains high food safety standards and facilitates rapid responses to emergencies in agriculture and fisheries.
- Technical Barriers to Trade: Reduces unnecessary regulations and recognizes EU certifications, improving market access for EU products.
- Trade in Services and Investment: Expands opportunities for EU service providers in Indonesia, ensuring non-discrimination and easier access to licenses.
- Digital Trade: Establishes a secure digital trade environment, promoting cross-border data flows and protecting consumer rights.
- Intellectual Property: Enhances protection and enforcement of IP rights, covering copyrights, trademarks, and geographical indications.
- Sustainable Development: Includes commitments to environmental protection, workers' rights, and cooperation on sustainable food systems.
- Dispute Settlement: Provides a mechanism for resolving disputes based on WTO principles, ensuring transparency and efficiency.
Next steps
Once signed, the agreement will be sent to the European Council for signature. After approval of the European Council the EU and Indonesia can sign the agreements. Thereafter, the text will be shared with the European Parliament for approval.