I-EU CEPA opens zero tariffs for key Indonesian exports
The deal is said to liberalize 98 percent of tariff lines and cover 99.5 percent of bilateral import value.
I-EU CEPA will grant zero tariffs on several key Indonesian exports to the European Union, including palm oil and its derivatives, textiles, footwear, and rubber products. Trade Minister Budi Santoso said the tariff commitments in the agreement are the highest Indonesia has ever offered in a trade pact. According to the government, I-EU CEPA will liberalize about 98 percent of tariff lines, covering 99.5 percent of the total import value of Indonesia and the European Union. In return, Indonesia will also eliminate tariffs on several flagship European Union products such as pulp, aircraft and their components, railways, and fertilizers. Negotiations began in 2016 and reached substantial agreement in September 2025. Both sides are now preparing legal texts, aligning domestic rules, and completing internal procedures before a signing targeted for the fourth quarter of 2026.