The European Commission has put forward proposals for the EU to sign two trade and investment agreements with Indonesia, covering areas from tariffs to protections for intellectual property.
Indonesia has a population of about 280 million and is one of the largest economies in the Indo-Pacific region, the Commission noted in a statement on Monday.
The agreements are a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA).
Under the CEPA, import duties would be removed on 98.5% of tariff lines and export procedures for EU goods to Indonesia would be simplified, including for agri-food products.
The package would also open opportunities for EU investment in Indonesia, with sectors mentioned including electric vehicles, electronics and pharmaceuticals.
It would include rules on intellectual property rights, including protection for 221 EU geographical indications — labels that link products to specific places and methods of production.
The plans also cover supply chains for energy and raw materials, including facilitating exports of “critical raw materials” through reduced tariffs.
Approval still needed in the EU and Indonesia
The Commission is seeking approval from EU member states in the Council to sign the agreements, after which they would need the European Parliament’s consent before they can enter into force.
Indonesia is carrying out its own internal ratification procedures in parallel, according to the same statement.
