Following years of slow progress, Indonesia and the European Union finalized a trade agreement on Tuesday, September 23—almost a decade after talks began in 2016.
The Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) was signed in Bali by EU Trade Commissioner Maroš Šefčovič and Indonesian Minister Airlangga Hartarto, opening investment in such strategic sectors as electric vehicles, electronics, and pharmaceuticals.
According to a statement from European Commission president Ursula von der Leyen
In all, EU exporters will save some 600 million euros ($708 million) a year in duties paid on their goods entering the Indonesian market, and European products will be more affordable and available to Indonesian consumers.
Without yet publicising any details, the EU has indicated that the trade deal will also include a protocol on palm oil.
In July, Indonesian President Prabowo Subianto visited Brussels and, in a joint announcement with the increasingly embattled von der Leyen, stated that a “political agreement” had been reached, finalizing the deal after 19 negotiation rounds.
