Thanks To IEU-CEPA, The European Union Does Not Need To Pay Hundreds Of Millions Of Euro Import Duty
BADUNG BALI - Indonesia and the European Union have officially completed the substantial stage of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations on Tuesday, September 23, 2025.
European Union Commissioner for Trade and Economic Security Maros Sefcovic said that the deal would remove more than 98 percent of fares, eliminate nearly all trade barriers, and open up new opportunities for investment between the two sides.
According to Maros, this agreement was designed by taking into account the interests and sensitivity of each country in order to achieve balanced results. As an illustration, the import rate of motorized vehicles of 15 percent in Indonesia will be removed in stages over the next five years.
He said that this policy is expected to open a market for the European Union's automotive industry and at the same time attract important investments, especially in the fast-growing electric vehicle sector.
"European Union exports will save more than 600 million euros in import duties on goods sent to Indonesia, funds that can be reinvested for innovation, expansion, and job creation," Maros said at the IEU-CEPA Indonesian Joint Announcement, Tuesday, September 23.
He added that the IEU-CEPA will also strengthen strategic cooperation in various advanced technology sectors such as electric, pharmaceutical, and electronic vehicles, all of which are important elements in future economic growth.
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In addition, Maros said that this agreement plays a role in ensuring access to raw materials is important to support environmentally and digitally friendly technology, as well as being an impetus to increase investment in renewable energy as well as high enforcement of employment standards and the environment.
He said that the IEU-CEPA also opens space for digital trade facilitation, especially for small and medium enterprises, amid the increasing trend of global protectionism and disruption of international supply chains.