Indonesia and the European Union on Tuesday finalised their negotiations on a comprehensive economic partnership agreement after nine years of talks, aimed at boosting trade and investment.
The agreement will remove import duties on 98.5% of EU goods exported to Indonesia and simplify procedures for entry for EU products including cars and food products such as milk powder, cheeses, meats, chocolates and bakery items, the EU said.
For the EU, the deal will result in savings of 600 million euros ($707.40 million) of duties averaging 10% a year on EU exports.
Indonesian goods will enjoy zero tariffs in 90% of the EU market upon implementation, the Indonesian economic ministry said, which should boost shipments for palm oil, coffee, textile and clothing and other products.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said he is aiming for the pact to enter into force on January 1, 2027.
Trade between Indonesia and the EU is expected to double in the first five years of implementation, Indonesia said.
Indonesia is in talks with European automakers on partnerships in battery and electric vehicle production in the Southeast Asian country, Airlangga told reporters.
However, non-tariff barriers, including the EU Deforestation Regulation (EUDR), remain a hurdle for the industry, he said in a text message to Reuters.
Posted by John3262005