22.09.202523:57:31UTC+00EU, Indonesia to Sign Trade Pact Today

The European Union and Indonesia are poised to finalize a long-anticipated trade agreement today in Bali, concluding almost a decade of negotiations. This agreement is designed to enhance economic connections between the resource-abundant nation of Indonesia and the 27-member European Union, while also providing a strategic response to the implications of U.S. President Donald Trump's tariff policies. This pact represents the EU's third trade agreement involving Southeast Asian countries, following previous accords with Singapore and Vietnam. Under the agreement, both parties have secured terms that will significantly reduce, or nearly eliminate, tariffs on a wide array of goods, in addition to lifting restrictions on key raw materials. EU Trade Chief Maros Sefcovic highlighted that this agreement is projected to save European exporters approximately EUR 600 million in tariffs. In contrast, Indonesia will benefit from improved market access for its palm oil, rubber, and textiles, while the EU stands to gain enhanced opportunities in machinery, pharmaceuticals, and renewable energy investments.