Brussels (Brussels Morning Newspaper) – European Commission President Ursula von der Leyen said on Sunday that a political agreement was reached to advance the European Union-Indonesia free trade deal.
“There’s a lot of untouched potential in our trade relationship and therefore this agreement comes at the right time because the new agreement will open new markets”,
von der Leyen stated at a press conference with Indonesian President Prabowo Subianto.
She further said that the deal is a major effort in strengthening EU–EU-Indonesia relations and deepening arrangements in ASEAN and the Indo-Pacific.
“We unlock new opportunities for 730 million people, fostering growth, jobs, and strategic cooperation”,
she said.
President @prabowo and I have reached a political agreement to advance the 🇪🇺🇮🇩 free trade agreement.
— Ursula von der Leyen (@vonderleyen) July 13, 2025
In a volatile world, this is the strength of partnerships. https://t.co/SWwmvRKkzn
European Commission President Ursula von der Leyen also traveled to Bali in Indonesia in November 2022 to attend the G20 Summit hosted by Indonesia.
How will Indonesian exports benefit from the agreement?
This milestone follows nearly a decade of negotiations, with over 19 rounds since talks began in 2016. The deal will allow Indonesian products, including textiles, garments, fisheries, and palm oil, to enter the European market with zero tariffs on about 80% of exports, significantly boosting bilateral trade.
How does the EU benefit from Indonesia’s surplus?
In 2024, trade between the European Union and Indonesia totaled $30.1 billion, which reflects a solid and expanding economic relationship. Indonesia had a trade surplus of $4.5 billion with the EU, meaning that Indonesia sold $4.5 billion more in goods and services to the EU than it purchased.
This surplus illustrates Indonesia’s strong export sectors, such as textiles, garments, fisheries, palm oil, and minerals, which already have considerable demand in Europe. This trade surplus and growing volume help illustrate the strength of the EU-Indonesia economic ties and provide a pathway leading to a free trade agreement between the two parties, which will focus on reducing tariffs and improving market access for both sides.
