🌍 Imagine getting a brand-new trade vibe after nearly a decade of negotiations… That's exactly what happened on Tuesday in Bali! Indonesia and the European Union officially signed a Comprehensive Economic Partnership Agreement (CEPA) that promises to shake up global trade.
Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, summed it up: "From the first round in Brussels in 2016 to today in Bali, this nine-year journey brings us to a milestone reflecting our commitment to an open, fair, and sustainable economy."
So, what's in the deal? Nearly 98% of tariff lines will get preferential treatment. That means Indonesian palm oil, textiles, footwear, and processed agricultural products will have smoother access to EU markets. And it's not just one-way: European high-tech goods, electronics, and digital services will find fresh opportunities in Indonesia.
European Commissioner for Trade and Economic Security Maros Sefcovic highlighted how CEPA will boost European investment in Indonesia and diversify supply chains. "Stable and predictable access to critical minerals—especially nickel and cobalt—will be a game-changer," added European Commission President Ursula von der Leyen.
Why should you care? Trade between Indonesia and the EU hit $30.1 billion in 2024. With CEPA in place, it's set to double within five years of launch. This huge leap could make waves in markets, tech, and even your favorite gadgets that rely on those essential minerals. 💡✨
Indonesia is now the third Southeast Asian economy to seal this pact with the EU, following Singapore and Vietnam. The deal is expected to kick in by early 2027, opening up a world of opportunities for entrepreneurs, students, and travelers exploring Asia's booming markets.
Reference(s):
Indonesia, EU sign economic partnership deal after 9 years of talks
cgtn.com
