Indonesia and EU to cancel tariffs on 80% of goods within new agreement

14:53 - 23.09.2025

September 23, Fineko/abc.az. Indonesia and the European Union have signed the Comprehensive Economic Partnership Agreement (IEU-CEPA), which envisages abolition of tariffs for 80% of Indonesian goods imported into the EU market, ABC.AZ reports, referring to Indonesian agency ANTARA.

Tariffs on palm oil, fish and textile products will also be abolished.

According to Indonesia's Coordinating Minister of Economy, Airlangga Hartarto, the country expects the agreement to enter into force on January 1, 2027. According to him, "trade between Indonesia and the EU should double in the first five years of the agreement's implementation".

European Commissioner for Trade Maros Sefcovic noted that the agreement will boost the flow of European investments to Indonesia and "help diversify supply chains, especially in the field of critically important minerals, which Indonesia is rich in".

According to the Indonesian Ministry of Economy, in 2024, the volume of trade between the parties amounted to $30.1 billion.