Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto (2nd R), and European Commissioner for Trade and Economic Security Maros Sefcovic (2nd L) attend a press conference in Bali, Indonesia, Sept. 23, 2025. (Photo by Dicky Bisinglasi/Xinhua)
JAKARTA, Sept. 23 (Xinhua) -- Indonesia and the European Union on Tuesday formally signed a Comprehensive Economic Partnership Agreement (CEPA) in Bali.
"From the first round of negotiations in Brussels in 2016, to today in Bali, this nine-year journey has brought us to a historic milestone that reflects our joint commitment to an open, fair, and sustainable economy through CEPA," said Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, in a joint statement with European Commissioner for Trade and Economic Security Maros Sefcovic.
The agreement covers liberalization of trade in goods, services, and investment. Around 98 percent of tariff lines will enjoy preferential treatment under the pact.
Key Indonesian exports, including palm oil, textiles, footwear, and processed agricultural products, are expected to benefit. New opportunities will also emerge for electronics, high-tech goods, and digital trade.
Sefcovic said the agreement opens new opportunities for European businesses in Indonesia's dynamic market. Sectors such as agri-food and advanced manufacturing stand to gain from greater market access, including prospects in automotive and electric vehicle investment.
Indonesia has become the third Southeast Asian country to conclude a CEPA with the EU, after Singapore and Vietnam, with the agreement expected to take effect in early 2027. ■
