JAKARTA: Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June.
Airlangga Hartarto, the chief economic minister for Southeast Asia’s biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.
“Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,“ Airlangga Hartarto said in a statement.
Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday.
The EU has discussed Jakarta’s rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said.
Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil.
Airlangga said the bloc’s deforestation rules were not part of the free trade negotiations, but Sefcovic had “promised to provide special treatment towards Indonesia regarding deforestation.” He did not elaborate.
Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and “we will communicate in details when we have an outcome.” Chaibi did not respond to a question about the special treatment.
The EU is Indonesia’s fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros’ worth from Indonesia.
Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said.
Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country’s export destinations as they deal with U.S. tariff challenges.
($1 = 0.8777 euros)
