EU food and drink industry welcomes the conclusion of the EU–Indonesia trade negotiations, awaits full details

FoodDrinkEurope, representing Europe's food and drink industry - the largest manufacturing industry in Europe, welcomes the conclusion of trade negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The agreement promises to improve market access conditions and support the competitiveness of European exporters in Southeast Asia's largest economy.

Indonesia, with a population of 283 million and a rapidly growing middle class, is a key growth market for Europe's high-quality food and drink products. In 2024, EU food and drink exports to Indonesia reached a value of €785 million, with a diverse product offering ranging from dairy products, processed fruit and vegetables, pet food, chocolate and sugar confectionery, olive oil, amongst others. Trade is largely complementary, with Indonesia being a major supplier of non-EU grown agricultural raw materials such as palm oil, cocoa, and coffee - key inputs for food and drink manufacturing in the EU.

CEPA will eliminate tariffs on 98.5% of EU tariff lines, including dairy products (such as milk powders, cheeses and infant formula), meat products (such as poultry and beef), and other food products such as chocolate, confectionery, bakery goods, canned fruits and vegetables. These improvements are expected to strengthen the competitiveness of EU food and drink exporters in the Indonesian market.

In addition, 221 EU Geographical Indications will be protected in Indonesia, covering iconic products like Camembert de Normandie, Comté, Lübecker Marzipan, Feta, Aceto Balsamico di Modena, and Gouda Holland. The agreement will also introduce faster, simpler, and more predictable export procedures for EU businesses.

Finally, CEPA aims to reinforce cooperation on sustainable food systems, alongside further commitments on sustainable development and environmental standards under a Trade and Sustainable Development Chapter.

We now await the publication of the full legal text, including tariff liberalisation schedules and implementation timelines, to carry out a comprehensive assessment of the agreement's impact.