On 23 September 2025, the European Union and Indonesia concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA). This marks a major milestone in strengthening economic ties between Europe and one of Southeast Asia’s most dynamic economies.

The agreement offers significant benefits for companies involved in international trade:

• Removal or reduction of import duties on 98.5% of EU products exported to Indonesia
• Improved market access for EU service providers, including full ownership in sectors like ICT and telecommunications
• Stronger protection of intellectual property and geographical indications
• Promotion of sustainable trade, with commitments to climate goals, labour rights, and transparent supply chains
• Favorable trade conditions in key sectors like electric vehicles, agri-food, pharma, and machinery

With a population of over 285 million, Indonesia offers substantial market potential. EU exporters are expected to save up to €600 million annually in duties.

What does this mean for your business?

For companies exporting to or investing in Indonesia, the agreement creates a much more favorable trade environment. At the same time, it requires preparedness in compliance, customs regulations, and certification requirements.

SGS Maco has been helping companies navigate international trade for years. We are ready to support your business in leveraging this new opportunity, in a compliant and sustainable way.

Curious what this deal means for your sector or product portfolio? Get in touch with us.