Indonesian Economy Minister Airlangga Hartarto announced that free trade negotiations between Indonesia and the European Union, which have been ongoing for nine years, are expected to conclude by the end of June.
Hartarto, who met with EU Trade Commissioner Maroš Šefčovič in Brussels yesterday, stated that “Indonesia and the European Union have agreed to conclude the remaining issues” and are ready to announce the “conclusion of substantive negotiations by the end of June 2025,” Reuters reports.
At a press conference, Hartarto said that Indonesia would receive zero tariffs on 80 percent of its export products to the EU and the removal of non-tariff barriers, while advocating for greater market access for footwear, clothing, palm oil, and fish products.
He added that the EU also discussed Jakarta’s rules on the mandatory use of local content in products sold on the Indonesian market, the automotive industry, trade in critical minerals, and investment facilitation.
The EU is Indonesia’s fifth-largest trading partner, with total trade between the two reaching 27.3 billion euros last year, according to EU data. EU exports to Indonesia in 2024 amounted to 9.7 billion euros, while imports from Indonesia were 17.5 billion euros.
Airlangga estimated that Indonesia’s exports to the EU could increase by more than 50 percent within three to four years after the trade agreement comes into effect.
EU Ambassador to Indonesia Denis Chaibi confirmed that discussions are ongoing and that more details will be announced “when there are results.”
