JAKARTA — The Indonesian government and European Union (EU) have finally completed their discussions on the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU–CEPA).
The agreement, which was scheduled to be announced on 23 September 2025, is expected to become the “golden ticket” for Indonesia’s crude palm oil (CPO) and derivative products to enter the European with zero percent tariff.
For many people it is certainly good news. But for others, not so fast. Despite the tariff barriers are eliminated, the exports of palm oil will have to go through the “high wall” of European Union Deforestation Regulation (EUDR).
“The trade agreement on tariff exemption under IEU – CEPA is good news. But if we cannot meet the requirements ruled by EUDR, the zero tariff scheme is useless. Our exports will be still hindered,” said Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI).
Eddy reminded that the key factor in determining the success of Indonesia’s palm oil exports is not only concerned with the annihilation of tariff, but also the ability to comply with the non-tariff regulations. Currently, the government and business players are reportedly improving the strategy to deal with the EUDR with an expectation to avoid burdening the palm oil industry players, especially the smallholders.
Meanwhile, the trade ministry stated that the agenda of 23 September 2025 event is not just the signing of the trade agreement, but also a joint statement to mark the end of discussions on the substance of the agreement.
“There will be still long process, from legal scrubbing to translation of the agreement texts to various formal languages of EU,” said Ni Made Kusuma Dewi, Head of Public Relations Bureau at the trade ministry (Kemendag).
Meanwhile, Economic Coordinating Minister Airlangga Hartarto said that once the IEU–CEPA officially takes effect, around 80% of Indonesia’s products will enter the EU market without any tariff. The same case will apply for European products entering Indonesian market.
“This is a big opportunity. Once it is signed, 80% of our products to EU will get zero tariff, and vice versa to Indonesia,” Minister Airlangga said during the Green Initiative Conference 2025 in Jakarta. (*)
