Historic Agreement Announced in Bali Commissioner Maroš Šefčovič marked a significant milestone on September 23, 2025, by announcing the conclusion of the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), following nine years of negotiations. Delivered alongside Indonesian Minister Airlangga in Bali, the speech emphasized the pact's role in enhancing economic cooperation amid global trade uncertainties.
Concrete Proposals and Policy Orientation Šefčovič detailed ambitious, concrete provisions including the elimination of over 98% of tariffs between the EU and Indonesia. The agreement targets growth in sectors such as palm oil, textiles, footwear for Indonesia, and agri-food and automotive industries in the EU. It includes protection for geographical indications, a complete digital trade facilitation package, and measures to diversify critical raw material supply chains.
The agreement reflects a clear orientation towards deeper economic integration, focusing on reducing trade barriers and enhancing cooperation. It strengthens EU trade powers in international agreements through increased regulatory harmonization and opens new avenues for investment and strategic partnerships.
Stakeholder Impact Analysis EU producers and exporters, including agri-food and automotive sectors, stand to benefit from tariff reductions and improved market access, potentially boosting revenues and job creation, considering the existing support for 15,000 European SMEs and 200,000 jobs linked to Indonesia trade. Indonesian industries like palm oil and footwear could expand exports, though they face intensified competition from EU imports.
EU regulatory bodies may experience increased oversight demands given the balance between eliminating tariffs and protecting geographical indications, while digital trade provisions will require updated frameworks to regulate new e-commerce flows. National authorities in both regions will need to implement and supervise compliance with new customs and investment facilitation rules.
Civil society stakeholders might view the agreement’s impact through the lens of sustainability and fair trade practices, as the pact asserts balanced and forward-looking principles but lacks specific environmental or labor standards in the speech.
Political Significance Šefčovič’s speech underscores the EU’s commitment to open, rules-based trade and strategic partnerships with emerging economies, signaling a tilt toward enhancing EU global influence through deeper integration and diversified supply chains. The agreement's focus on digital trade and raw materials diversifies policy objectives, balancing economic growth with strategic security, without explicitly extending EU regulatory powers abroad but strengthening trade openness and cooperation.
Overall, the speech presents a detailed roadmap for stronger EU-Indonesia ties, combining tariff liberalization with modern trade facilitation, signaling moderate expansion of EU integration and regulatory alignment in a key external market.
← Atlas › News › International trade