PALMOILMAGZINE, BALI – Palm oil and other plantation commodities took center stage during a bilateral meeting between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and European Commission’s Trade and Economic Security Commissioner, Maroš Šefčovič, held in Bali on Tuesday (Sept 23, 2025). The meeting also marked a significant step in strengthening Indonesia–EU trade and investment ties under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU–CEPA).
Airlangga emphasized that finalizing the IEU–CEPA negotiations is a follow-up to the political agreement reached between the President of Indonesia and the President of the European Commission last July. “Key issues on market access, tariffs, investment services, and trade facilitation have been addressed in the negotiations. Ratification and implementation must be expedited so that the benefits can be realized, especially for Indonesia’s priority commodities,” Airlangga said, as quoted by Palmoilmagazine.com from the Coordinating Ministry for Economic Affairs.
Commissioner Šefčovič highlighted that Indonesia’s strategic commodities—including palm oil, cocoa, textiles, and footwear—stand to gain substantially from the agreement. “European businesses welcome the rapid progress achieved and have expressed a growing interest in investing in Indonesia,” he stated.
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Beyond palm oil, the discussion also focused on agricultural MSMEs. Airlangga stressed the importance of ensuring that small-scale plantation producers experience tangible benefits from the IEU–CEPA, particularly through opportunities in digital trade such as e-logistics, e-payments, and ASEAN–EU digital connectivity.
The talks further addressed balancing agricultural imports from Europe with expanded market access for Indonesian plantation commodities. “MSMEs must remain central to international trade, just as in the EU where 99 percent of companies are MSMEs,” Šefčovič added.
The session concluded with a joint signing and announcement on the Substantial Conclusion of IEU–CEPA Negotiations, followed by the Indonesia–EU Business Outlook forum. The agreement is expected to reinforce the competitiveness of Indonesian plantation commodities—especially palm oil—in the European market while unlocking new investment opportunities in downstream industries. (P3)
