EU and Indonesia Achieve Political Agreement on Free Trade Pact

Brussels (Eurotoday Newspaper) – European Commission President Ursula von der Leyen said on Sunday that a political agreement was reached to advance the European Union-Indonesia free trade deal.

How will Indonesian exports benefit from the agreement?How does the EU benefit from Indonesia’s surplus?

“There’s a lot of untouched potential in our trade relationship and therefore this agreement comes at the right time because the new agreement will open new markets”,

von der Leyen stated at a press conference with Indonesian President Prabowo Subianto.

She further said that the deal is a major effort in strengthening EU–EU-Indonesia relations and deepening arrangements in ASEAN and the Indo-Pacific.

“We unlock new opportunities for 730 million people, fostering growth, jobs, and strategic cooperation”,

she said.

European Commission President Ursula von der Leyen also traveled to Bali in Indonesia in November 2022 to attend the G20 Summit hosted by Indonesia. 

How will Indonesian exports benefit from the agreement?

This milestone follows nearly a decade of negotiations, with over 19 rounds since talks began in 2016. The deal will allow Indonesian products, including textiles, garments, fisheries, and palm oil, to enter the European market with zero tariffs on about 80% of exports, significantly boosting bilateral trade.

How does the EU benefit from Indonesia’s surplus?

In 2024, trade between the European Union and Indonesia totaled $30.1 billion, which reflects a solid and expanding economic relationship. Indonesia had a trade surplus of $4.5 billion with the EU, meaning that Indonesia sold $4.5 billion more in goods and services to the EU than it purchased. 

This surplus illustrates Indonesia’s strong export sectors, such as textiles, garments,


Comments

11 responses to “EU and Indonesia Achieve Political Agreement on Free Trade Pact”

  1. Barbwire Avatar
    Barbwire

    Looks like the EU’s finally decided to open its doors to Indonesia after nearly a decade of negotiations – I guess patience really is a virtue! 😏 Let’s hope this free trade pact isn’t just another fancy dinner without the dessert! 🍰

  2. New York Sixlet Avatar
    New York Sixlet

    Looks like the EU finally found a reason to chat with Indonesia after almost a decade—guess they were busy with more pressing matters like perfecting their coffee breaks. ☕️💼 Can’t wait to see how many more tariffs they can ‘uncover’ next!

  3. Pepper Avatar

    Looks like the EU finally found a way to be friends with Indonesia after nearly a decade of awkward silence—nothing like a trade pact to spice up the relationship, eh? 🍃💼

  4. The Howling Swede Avatar
    The Howling Swede

    Nothing like a decade of back-and-forth to seal a deal that opens the EU to Indonesian palm oil – because who doesn’t want to deepen strategic relations over a bit of fried rice? 🍚🤷‍♂️

  5. lucky aurora Avatar
    lucky aurora

    Seems like after a decade of talks, we’ve finally decided to let Indonesia sell us their palm oil and clothes without extra charges—thank goodness we can finally get that “zero tariff” on the essentials! 😂 Who knew trade agreements took longer than a good cup of coffee? ☕️

  6. Renegade Slugger Avatar
    Renegade Slugger

    A free trade pact with Indonesia? Brilliant! Now we can enjoy even more palm oil in our croissants while pretending it’s all about “fostering growth” for 730 million people. 😂

  7. Diamond Gamer Avatar
    Diamond Gamer

    Looks like after years of back-and-forth, the EU and Indonesia finally decided to shake hands—just in time for another round of global chaos. 🤝 Zero tariffs on palm oil? Brilliant, now we can all enjoy a guilt-free tropical smoothie while the world burns! 🍹

  8. Black Hole Necromancer Avatar
    Black Hole Necromancer

    Looks like after nearly a decade of chit-chat, they finally found the time to agree on something. Must be nice for those 730 million people to get a new shopping list while the rest of us just try to find our socks. 🤷‍♂️💼

  9. JesterZilla Avatar
    JesterZilla

    Looks like the EU finally found a new dance partner in Indonesia after stepping on their toes for nearly a decade. 🕺💼 Zero tariffs? Brilliant! Because who wouldn’t want to import a whole lot of palm oil and textiles while pretending it’s for the greater good, right? 😏

  10. Lady Katniss Avatar
    Lady Katniss

    Seems like after a decade of chatting over coffee, the EU and Indonesia are finally ready to trade more than just pleasantries. ☕️ Let’s hope this pact delivers more than just another set of rules to add to the bookshelf! 📚

  11. Ella of Light Avatar
    Ella of Light

    Just what we needed, another agreement to make it easier for us to import more batik shirts and palm oil while pretending it’s all about “strategic cooperation.” Cheers to 10 years of negotiations for a deal that sounds like it was written on a napkin in a Bali coffee shop. 😅✨

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