According to Budi, the agreement offers significant benefits for Indonesia, from wider market access to reduced trade barriers, including those related to the EUDR.
He expressed confidence that the deal’s implementation could potentially double Indonesia’s exports to the EU.
Trade Ministry data showed that Indonesia-EU trade reached 18 billion US dollars between January and July 2025, marking a 4.34 percent increase from the same period last year.
In 2024, bilateral trade totaled 30.40 billion dollars, with Indonesia recording a surplus of 4.4 billion dollars.
IEU-CEPA removes up to 98 percent of tariffs, eliminates most barriers on goods and services, and paves the way for greater investment.
Budi emphasized that key sectors stand to benefit directly. Indonesia is projected to gain in commodities such as palm oil, textiles, and footwear, while the EU will expand its access in food, agriculture, automotive, and chemical industries.
The agreement is also expected to provide certainty and broader opportunities for labor-intensive industries and the agricultural sector, both of which remain crucial pillars of Indonesia’s economy.
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Translator: Primayanti
Editor: Azis Kurmala
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