Indonesia and the European Union (EU) have concluded a free trade agreement following lengthy negotiations that accelerated after the increase in American tariffs.
Maros Sefcovic (on the left), European Commissioner for Trade, and Airlangga Hartarto, Indonesian Minister of Economy, speak after the signing of the Indonesia-EU Comprehensive Economic Partnership Agreement, in Nusa Dua, on the Indonesian island of Bali, on September 23, 2025. (Photo: Sonny TUMBELAKA / AFP)
Denpasar (Bali, Indonesia) – The Indonesian Minister of Economy, Airlangga Hartarto, and the European Commissioner for Trade, Slovak Maros Sefcovic, signed the CEPA (Comprehensive Economic Partnership Agreement) on Tuesday in Bali, which will facilitate trade between the Twenty-Seven and the largest economy in Southeast Asia.
“The EU and Indonesia are sending a strong message to the world that we are united in our commitment to open, rules-based, and mutually beneficial international trade,” said Mr. Sefcovic.
Delayed notably by the thorny issue of products derived from deforestation, talks accelerated after U.S. President Donald Trump’s decision to impose increased tariffs on many countries.
“This is a ten-year journey that has led to an important milestone reflecting our commitment to an open, fair, and sustainable economic (relationship),” added Mr. Airlangga Hartarto.
As its products exported to the United States are now taxed at 19%, Jakarta has turned to the EU for preferential access. (September 23, 2025)
