EU-Indonesia Free Trade Agreement (CEPA)

New EU Trade Agreement with Indonesia: Opportunities for German Companies

The EU and Indonesia signed a comprehensive economic partnership agreement (Comprehensive Economic Partnership Agreement, CEPA) on September 23, 2025, following around nine years of negotiations. The agreement opens up new prospects, particularly for German businesses.

One key outcome is that around 80% of Indonesian export goods could be exempt from import tariffs when entering the European market. The Southeast Asian country is an important supplier of products such as palm oil and textiles, as well as key raw materials including nickel and bauxite. In return, EU suppliers will gain improved market access to Indonesia, particularly for industrial products, machinery, and capital goods.

For Germany, these improvements are beneficial in many respects.

Lower tariffs and fewer trade barriers will make it easier for German companies to access the Indonesian market, with a particular focus on export opportunities.

Improved access to essential raw materials will also strengthen the resilience of European supply chains. In addition, the agreement will improve investment conditions in Indonesia, a growing market with increasing demand and the world’s fourth-largest population.

Entry into Force of the New Trade Agreement

The agreement will only enter into force once it has been ratified by the Indonesian parliament, the EU member states, and the European Parliament. Indonesia is aiming for the agreement to take effect in 2027.

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