The European Union and Indonesia have concluded negotiations on a comprehensive Economic Partnership Agreement (EPA), as announced by the European Commission on Tuesday. This agreement aims to bolster trade and investment ties between the two regions, fostering new export opportunities and establishing more secure supply chains for vital energy resources and raw materials. Brussels emphasized the accord as a significant milestone in implementing the EU’s strategy for diversification and the cultivation of strategic partnerships.
The agreement details provisions designed to provide EU businesses with preferential access to the Indonesian market through the elimination of import tariffs on 98.5 percent of tariff lines. European companies will also be granted the ability to offer services with full ownership rights in key sectors, including computer and telecommunications. Furthermore, the EPA is intended to stimulate investment within strategically important sectors, specifically highlighting the electric vehicle and electronics industries.
European Commission President Ursula von der Leyen stated the agreement directly supports the EU’s commitment to strengthening diversification and partnerships, aiming to safeguard jobs and stimulate economic growth within the Union. She underscored the potential for both European businesses and agricultural producers to capitalize on new opportunities arising in Indonesia’s dynamic and expanding economy. The agreement is also expected to contribute to a reliable and predictable supply of critical raw materials essential for the European clean technology and steel industries.