The EU is negotiating a Free Trade Agreement (FTA) with Indonesia with the objective of facilitating and creating new market access, increasing trade and investment between the EU and Indonesia, and promoting sustainable development.

The aim is to conclude an agreement similar in coverage to what the EU achieved in its trade agreements with Singapore in 2014 and Vietnam in 2015.

The EU officially launched negotiations with Indonesia on 18 July 2016. The 11th round was held from 8 to 12 November 2021 by video-conference.

Before launching talks the EU carried out a joint scoping exercise with Indonesia to determine the scope and the level of ambition of a future trade agreement. The exercise was successfully concluded in April 2016 and in July 2016 EU governments authorised the Commission to start negotiations.

The European Commission negotiates the FTA on behalf of all the EU Member States. The EU's Trade department regularly debriefs and consults with Member States and the European Parliament on the state of play of the negotiations.

Within the ASEAN region, the EU has already concluded negotiations with Singapore and Vietnam – which entered into force in November 2019 and August 2020, respectively. Other negotiations with the Philippines, Thailand, and Malaysia have also been launched but are presently on hold. The ultimate objective is for bilateral trade agreements with individual ASEAN countries to serve as building blocks towards a future region-to-region agreement between the EU and ASEAN.