Jakarta: Indonesia and the European Union have concluded a landmark trade agreement that will eliminate or reduce tariffs to near zero on almost all goods, strengthening ties between the two partners amid tariffs imposed by former US President Donald Trump.
According to Qatar News Agency, EU Commissioner for Trade and Economic Security Maros Sefcovic stated that the agreement will open a new chapter and remove restrictions on transactions involving key raw materials.
Under the deal, tariffs on 96% of goods will be reduced to zero over five years. EU exports to Indonesia are expected to increase by at least 30%, equivalent to about 3 billion euros. Tariffs on European cars will be lowered from 50% to zero within five years, while tariffs on machinery and equipment will be cut from 30% to zero immediately.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade continuing to expand, reaching $30.1 billion in 2024.