BRUSSELS – Import tariffs will remain on certain ‘sensitive products’, including rice, sugar, and bananas, to prevent an influx into the European market.
The EU aims to enhance imports of valuable raw materials essential for the green industry, such as nickel used in batteries and accumulators. Additionally, the agreement is expected to facilitate EU companies in providing services within Indonesia’s computer and telecommunications sector.
The European Commission estimates that EU exporters will save 600 million euros in import costs each year due to the deal. Approval from EU member states and the European Parliament is still required for the trade agreement to take effect.
Recently, the European Union has been focused on securing numerous trade deals globally, particularly as relations with the United States have worsened since Donald Trump took office. The Commission is also aiming to finalize a free trade agreement with India by the year’s end and to complete negotiations with the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay).
According to European Commission President Ursula von der Leyen, the agreement with Indonesia offers “new opportunities for businesses and farmers in a large and growing economy.” She reached a political consensus on the deal with Indonesian President Prabowo Subianto in July. Negotiations with Indonesia have been ongoing since 2016.
(September 23, 2025)
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