PALMOILMAGAZINE, JAKARTA — Indonesia’s efforts to broaden market access in Europe and Eurasia are gaining momentum. Two major trade agreements—the Indonesia-European Union Comprehensive Economic Partnership Agreement (Indonesia-EU CEPA) and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA)—are being fast-tracked for completion by 2025. This progress opens new doors for key national commodities, especially palm oil.
Minister of Trade Budi Santoso stated that the acceleration of both negotiations is a positive signal amid global trade uncertainty. These agreements are expected to be crucial instruments for boosting Indonesia’s competitiveness and expanding access to more than 600 million consumers in both the EU and the Eurasian Economic Union.
“We’re aiming to finalize both agreements this year. The Ministry of Trade is committed to ensuring this process delivers real benefits to businesses and the wider community,” Budi said in an official statement to Palmoilmagazine.com on Wednesday, June 11, 2025.
Also Read: Palm Oil Accelerates in March 2025: Production and Exports Surge, European and U.S. Markets Revive
Negotiations with the EU began in 2016 and are currently heading into the 19th round, scheduled for early July 2025 in Bogor. Meanwhile, FTA talks with the Eurasian bloc, which started in late 2022, have reached their fourth round, held in March 2024 in Armenia.
Palm Oil Set to Gain from Trade Deals
Palm oil is expected to be one of the biggest winners from these agreements. By eliminating tariffs and reducing non-tariff barriers, Indonesian palm oil—often challenged by sustainability concerns in the European market—stands a chance to regain trust and expand its market reach.
Minister Budi emphasized that the CEPA and FTA will help remove obstacles for strategic exports such as palm oil, agricultural products, textiles, and electronics, allowing them to compete more effectively in high-purchasing-power regions.
“These are premium markets. With fairer and more open trade systems, our flagship products like palm oil will have greater opportunities,” he explained.
Balancing Trade and Environmental Commitments
While palm oil presents major export potential, Indonesia acknowledges European concerns over environmental impacts. In this regard, Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, highlighted that cooperation with Europe is designed to be complementary.
“An essential aspect of these agreements is striking a balance between trade expansion and environmental protection. This will support sustainable development while improving overall welfare,” said Djatmiko.
Beyond trade, the agreements also aim to attract foreign investment in high-tech industries. The Indonesian government hopes that capital from Europe and Eurasia will strengthen local industries, accelerate downstream development, and create jobs.
To ensure inclusivity, small and medium-sized enterprises (SMEs) are also being prepared to seize these opportunities. The Ministry of Trade has launched the BISA Export Program (Berani Inovasi, Siap Adaptasi) to support SMEs, with direct assistance from overseas trade representatives.
“These agreements are inclusive by design. We want SMEs to level up and break into international markets,” Budi added.
Trade Data Reflects Strong Potential
Trade statistics show strong prospects. In 2024, total trade between Indonesia and the EU reached US$30.1 billion, with Indonesia enjoying a US$4.5 billion surplus. However, trade with the Eurasian bloc showed a US$1.1 billion deficit from a total volume of US$4.1 billion.
“We’re optimistic that greater market access to Eurasia will help narrow the deficit. Now is the time for Indonesia to capitalize on these opportunities,” Djatmiko said.
The government stressed that concluding the CEPA and FTA is more than just a trade agenda—it’s a strategic national move to address global challenges, reinforce domestic industries, and strengthen Indonesia’s role as a key Asia-Europe trading partner. (P2)
