EU and Indonesia free trade deal strengthens tech and digital supply chains
The agreement between Indonesia and the EU promotes renewable energy, low-carbon technologies and intellectual property protections, supporting Europe’s clean tech industries and advancing global cooperation on digital trade.
The European Union and Indonesia have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA), strongly emphasising technology, digitalisation and sustainable industries.
The agreements are designed to expand trade, secure critical raw materials, and drive the green and digital transitions.
Under the CEPA, tariffs on 98.5% of trade lines will be removed, cutting costs by €600 million annually and giving EU companies greater access to Indonesia’s fast-growing technology sectors, including electric vehicles, electronics and pharmaceuticals.
European firms will also gain full ownership rights in key service areas such as computers and telecommunications, helping deepen integration of digital supply chains.
A deal that embeds commitments to the Paris Agreement while promoting renewable energy and low-carbon technologies. It also includes cooperation on digital standards, intellectual property protections and trade facilitation for sectors vital to Europe’s clean tech and digital industries.
With Indonesia as a leading producer of critical raw materials, the agreement secures sustainable and predictable access to inputs essential for semiconductors, batteries and other strategic technologies.
Launched in 2016, the negotiations concluded after the political agreement reached in July 2025 between Presidents Ursula von der Leyen and Prabowo Subianto. The texts will undergo legal review before the EU and Indonesia ratification, opening a new chapter in tech-enabled trade and innovation.
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