Indonesia is set to boost its exports to Europe by more than 50 percent starting after the implementation of the IEU-CEPA (Indonesia Europe Union - Comprehensive Economic Partnership Agreement) trade deal, which removes tariffs on over 98 percent of Indonesian products, including apparel and agricultural goods.
“If the agreement takes effect, its impact will be very significant. The Coordinating Minister for Economic Affairs guarantees that our exports to Europe could rise by more than 50 percent,” said Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, in Jakarta on Wednesday, December 3, 2025, as quoted by Antara.
Under IEU-CEPA, more than 98 percent of Indonesian products exported to Europe will be subject to zero tariffs, including apparel and accessories that previously faced tariffs of 7-15 percent.
Agricultural products, such as bananas, which were previously subject to tariffs of up to 16 percent, will also enjoy tariff-free access under the agreement.
Deputy for Coordination of State-Owned Enterprises at the Ministry, Ferry Irawan, emphasized that the trade deal opens broader market access for Indonesian products across the European Union. It offers multiple benefits, including: lower tariffs on most Indonesian exports to Europe, increased national economic value, simplified visa procedures through fast-track policies, and key Commodities Benefiting from Zero Tariffs.
A range of export commodities will benefit from 0 percent tariffs, including: agricultural and plantation products: palm oil, coffee, cocoa, rubber, fisheries products: fish, lobster, shrimp, forestry products: timber, processed wood, wood panels, manufactured goods: textiles, electronics
Beyond leveraging IEU-CEPA for export growth, the government plans to strengthen the domestic economy through initiatives including: boosting productivity and implementing blue and green economy strategies, developing urban centers as growth hubs, accelerating investment, strengthening industrialization, expanding tourism and the creative economy, accelerating digital transformation, and maximizing government spending for productivity gains
The Coordinating Ministry for Economic Affairs sees IEU-CEPA as a key tool for achieving 8 percent economic growth by 2029.
Source: RRI News
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
