The main objectives of the agreements between the European Union and Indonesia are to enhance and strengthen the rules-based international trading system, deepen bilateral trade and investment relations, improve access to the Indonesian market for European Union companies, and create a more transparent legal framework for trade and investment. “Moving forward with these agreements demonstrates that, even in a challenging geopolitical environment, the European Union continues to build its network of partnerships in order to strengthen open markets and thereby support Estonian companies,” said Foreign Minister Margus Tsahkna.
Indonesia is Southeast Asia’s largest economy and the EU’s 30th-largest trading partner. In 2025, EU exports to Indonesia amounted to €10.2 billion. Estonia’s total exports of goods and services to Indonesia amounted to €13.6 million last year. Under the agreement, tariffs will be eliminated on more than 98% of tariff lines, covering almost all EU–Indonesia trade by value.
According to the foreign minister, opening the market and reducing trade barriers will improve opportunities for Estonian companies to export machinery, electrical equipment and electronic products to Indonesia, as well as, for example, wood products, processed food products and environmental technology solutions. “By increasing the transparency of trade rules and simplifying customs procedures, the Comprehensive Economic Partnership Agreement will have a positive impact on the EU business environment. For Estonian companies, however, the most significant impact in the Indonesian market lies in services and digital trade, as the agreement will, among other things, facilitate the cross-border flow of data and support the development of digital commerce,” Tsahkna explained. He added that, from the perspective of economic security, the Comprehensive Economic Partnership Agreement will improve the EU’s access to critical raw materials, including nickel.
