- Indonesia and the EU finalized a free trade agreement after nine years of negotiations, accelerated by concerns over US tariff policies under Donald Trump
- The deal eliminates import duties on over 90 percent of products, with most taking effect immediately and others like Indonesia’s 50 percent car tariff phased out over five years
- Bilateral trade valued at 30.1 billion USD in 2024 is expected to double within five years, with the EU saving 600 million EUR in Indonesian duties
- The agreement aims to diversify supply chains away from China and boost exports of EU chemicals, machinery and food products while increasing Indonesian palm oil, coffee and textile exports
- The deal requires legal revision, translation, approval by EU Council and Parliament, plus Indonesian ratification before taking effect on January 1, 2027
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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