The move drew fierce criticism from environmental groups, who see the move as a capitulation to global trade interests.
On September 23, the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), set to take effect in 2027, was concluded after nearly a decade of negotiation.
The agreement, praised as “historic” by both sides, will eliminate tariffs on more than 98 per cent of goods traded between the two economies and nearly 99 per cent of the value of imports, according to Indonesia’s coordinating minister of economic affairs, Airlangga Hartarto.
A truck loaded with oil palm navigates an unpaved road at a plantation in Indonesia’s Aceh province on September 23. Photo: AFP
Indonesian exports – ranging from palm oil and textiles to seafood and critical minerals – are expected to gain unprecedented access to EU markets, potentially boosting Indonesia’s gross domestic product by as much as US$2.8 billion annually.