The European Union and Indonesia have concluded negotiations on a comprehensive Economic Partnership, Investment Protection and Trade Agreement, as announced by the European Commission on Tuesday.
The agreement aims to bolster trade and investment ties between the EU and Indonesia, fostering new export opportunities and building more secure supply chains, particularly for energy and raw materials. Officials in Brussels described the development as a “significant milestone” in the EU’s strategy focused on diversification and forging strategic partnerships.
Key provisions within the agreement will grant companies from the EU preferential access to the Indonesian market, with import tariffs set to be eliminated on 98.5 percent of tariff lines. Furthermore, European businesses will be permitted to provide services with full ownership rights in vital sectors, including computing and telecommunications. The agreement also intends to encourage investment in strategically important industries such as electric vehicles and electronics.
European Commission President Ursula von der Leyen stated that the agreement aligns with a commitment to strengthen diversification and partnerships, supporting jobs within the EU and stimulating economic growth. She emphasized that it creates new avenues for businesses and farmers within a key and expanding economy, while simultaneously securing a stable and predictable supply of critical raw materials vital for Europe’s clean technology and steel industries.
