Indonesia-European Union Comprehensive Economic Partnership Agreement
Concluded September 2025. Eliminates 98.5% of tariff lines with 80% effective upon entry into force. Pending ratification by Indonesian legislature, European Parliament, and EU Council, targeting January 2027. Indonesia set to lose EU GSP developing-country preferences around that time, making the CEPA critical for maintaining market access.
Key Facts
Tariff Coverage
98.5% of tariff lines to be eliminated; EU eliminates over 98% of Indonesian lines immediately
Key Sectors
Motor vehicles, machinery, chemicals, pharmaceuticals, palm oil, textiles, footwear, electronics, digital trade
Rules of Origin
Standard EU-model rules with CTC and RVC criteria; goods must be substantially processed to qualify
Exclusions & Limitations
Palm oil subject to EU deforestation regulation sustainability requirements. EU exporters projected to save ~EUR 600M annually in duties. Pending ratification.