The European Union and Indonesia concluded negotiations on their Comprehensive Economic Partnership Agreement (CEPA), launched in 2016, whose scope makes it a strategic instrument of economic integration.
According to the statement by the European Trade Commissioner, Maroš Šefčovič, made today (23.09.2025) in Bali, the signing of the CEPA constitutes the signing as “A historic breakthrough, a turning point for both our economies and our partnership.”Among the most immediate results, the following stand out: elimination of more than 98% of tariffs, which, according to Šefčovič, will allow European exporters save more than 600 million euros in customs duties, reinvestible funds in innovation, expansion and employment.
In the plane customs, the chapter of Customs and Trade Facilitation It consolidates the achievements of the WTO Trade Facilitation Agreement and expands them through strengthened commitments on regulatory transparency, institutional cooperation, and consultations with the private sector. This is complemented by the Protocol on Mutual Administrative Assistance, which provides OLAF, European customs, and Indonesia with a legal framework for exchanging information and coordinating actions against fraud, smuggling, and counterfeiting.
CEPA also paves the way for closer cooperation in cutting-edge sectors Such as electric cars, the pharmaceutical industry, and electronics, which are essential to the future of both economies. At the same time, according to the European Commissioner, it contributes to securing critical raw materials for the green and digital transition, encourages investment in renewable energy, and consolidates high environmental and labor standards.
In terms of digital commerceThe agreement establishes a predictable and fair framework for electronic transactions, with rules on data flows, consumer protection, and cybersecurity. This chapter includes specific measures to reduce barriers and support the participation of small and medium-sized enterprises in the digital economy, strengthening their global competitiveness.
In Šefčovič's words, “In a world of rising protectionism and fragile supply chains, the EU and Indonesia are choosing openness and collaboration to boost competitiveness, create jobs, and strengthen resilience.”.
This context highlights the EU's strategy to deepen its trade and economic ties with other regions, such as Southeast Asia.EU-Indonesia Agreement)
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