PALMOILMAGAZINE, JAKARTA — Good news for Indonesian exporters: a range of the nation’s top products — from textiles, footwear, and processed foods to palm oil and its derivatives — will enjoy zero tariffs once the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) officially takes effect.
This was confirmed by Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, during a public outreach event in Jakarta on Monday (4/8). “For products like apparel and footwear, tariffs will immediately drop to zero upon Entry Into Force (EIF). The same applies to processed foods, palm oil and its derivatives, and even biodiesel,” he stated, as quoted by Antara.
IEU-CEPA is regarded as Indonesia’s most comprehensive bilateral trade agreement to date. Spanning 25 chapters, it covers tariff liberalization, trade facilitation, economic cooperation, and new strategic issues such as sustainability and digitalization.
According to Djatmiko, around 98% of all tariff lines will be eliminated by both parties. In terms of the EU’s total imports from Indonesia, 99% will enjoy tariff preferences, with most gaining immediate benefits at the start of implementation. “Some products will have phased tariff reductions — some by the third year, others by the fifth — but nearly all will be included at EIF,” he explained.
Products with strong comparative advantages expected to benefit significantly include textiles and textile products (TPT), fisheries, processed foods, agricultural and forestry products, electronics, and steel.
A key milestone toward finalizing IEU-CEPA was marked by the exchange of political commitment letters between the Government of Indonesia and the European Commission. The signing, conducted by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and European Commissioner for Trade Maroš Šefčovič, symbolized both sides’ strong commitment to accelerating negotiations.
The momentum was further strengthened during a bilateral meeting between Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels on 13 July 2025, where the substantive conclusion of the negotiations was officially announced.
IEU-CEPA is expected to become a new engine driving trade and investment between the two sides. Together, Indonesia and the European Union represent a vast and dynamic market of over 685 million people, offering long-term strategic opportunities.
“Our hope is that all Indonesian export products can immediately benefit as soon as the law comes into force. Let’s hope everything gets included at EIF,” Djatmiko concluded.
Attention now turns to the ratification process and technical implementation to ensure that businesses — especially in key export sectors — can quickly reap the real benefits of the agreement. (P2)
