Indonesia, EU finalise trade deal after nine years of talks
Indonesia and the European Union on Tuesday finalised their negotiations on a comprehensive economic partnership agreement after nine years of talks, aimed at boosting trade and investment.
On the one hand, the agreement will remove import duties on 98.5% of EU goods exported to Indonesia and simplify procedures for entry for EU products including cars and food products such as milk powder, cheeses, meats, chocolates and bakery items, the EU said.
This will result in savings of 600 million euros ($707.40 million) of duties averaging 10% a year on EU exports.
On the other hand, Indonesian goods will enjoy zero tariffs in 90% of the EU market upon implementation, the Indonesian economic ministry said, which should boost shipments for palm oil, coffee, textile and clothing and other products.
Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said he is aiming for the pact to enter into force on January 1, 2027.
Moreover, Indonesia is in talks with European automakers on partnerships in battery and electric vehicle production in the Southeast Asian country, Airlangga told reporters.
Critical Minerals Deal
EU Trade Commissioner Maros Sefcovic said in Bali the agreement would bolster investment into Indonesia by European companies and help diversify the supply chain, particularly for critical minerals, which Indonesia has in abundance.
In a separate statement, European Commission President Ursula von der Leyen said the agreement would help to provide “a stable and predictable supply of critical minerals, notably nickel and cobalt.”
