Factsheet: EU-Indonesia Comprehensive Economic Partnership Agreement - Agriculture

OPENING OPPORTUNITIES FOR EUROPEAN FARMERS

The EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) will open unprecedented access to Indonesia for European farmers and food producers. Indonesia is a growing and dynamic market, and the CEPA will unlock new opportunities for a range of agrifood exports. 

Providing EU farmers and agrifood producers with greater access to this market will ensure them a secure position in years to come. At the same time, the Agreement respects both sides’ sensitivities in the agri-food sectors. 

It will:

• Remove high tariffs and burdensome procedures for a host of EU agri-food exports
• Strengthen the position of iconic EU agri-food products on the Indonesian market by protecting them from imitation
• Protect EU farmers by excluding from liberalisation sensitive products such as rice, sugar, eggs, most poultry, bananas and ethanol, or offering carefully designed quotas
• Maintain the EU’s stringent rules on animal and plant health and food safety, with no exceptions

Removing high tariffs on EU agri-food exports

EU agri-food exports to Indonesia were worth €1 billion in 2024. The CEPA will remove Indonesian duties on the vast majority of agricultural imports from the EU to the benefit of both EU agricultural producers and Indonesian consumers, by increasing the supply and variety of high-quality food.

This includes key EU exports like dairy products (such as milk powders, cheeses and infant formula), meats (such as poultry and beef), fruit and vegetables, and a wide range of processed foods (such as chocolates, confectionery, bakery goods, canned fruits and vegetables), among many other products.

The result will be a more level playing field, boosting EU agri-food exports.

Protecting the EU’s finest food and drink products from imitation

The CEPA will protect 221 EU food and drink products from imitation in Indonesia. 

These include products such as Camembert de Normandie, Comté, Lübecker Marzipan, Feta, Aceto Balsamico di Modena, Pecorino Romano, Gouda Holland, Queijo S. Jorge and Kraški pršut.

Such protection makes these products more distinct, which allows producers to strengthen their market positions in Indonesia and to sell for a premium price.

Faster, simpler, and more predictable export procedures

EU agri-food companies exporting to Indonesia will benefit from:

• The same requirements applying to all EU Member States in Indonesia with no differentiated treatment.
• Faster, simpler, and more predictable procedures - simplified import procedures by Indonesia, with streamlined import licensing, no volume controls, and decisions on import license applications within 30 days.
• Clearer sanitary and phytosanitary rules for smoother trade in animal and plant products, with clear timelines for audits and import procedures, commitments to a risk-based approach, transparency, regionalisation, reliance on international standards, and the recognition of the EU as a single entity for export certifications and controls.
• More targeted and proportionate measures for animal health issues - in the past, all EU exports could be banned in cases of diseases in certain regions. The agreement will allow non-affected EU zones to export even when a disease is present in some other areas within the EU (known as ‘regionalisation’).

Defending the interests of European farmers

The Agreement takes into account the interests of EU agricultural producers, and as such, there will be no liberalisation for sensitive agri-food products such as rice, sugar, eggs, fresh bananas, ethanol, modified starches and albumins. Furthermore, limited quotas are granted to garlic, mushrooms, sweetcorn, manioc starch and high sugar-content products.

Complementary agri-food markets

The deal is expected to have a limited impact on the EU agri-food market, as Indonesia does not produce or export many agri-food goods which are in demand on the European market that the EU does not already produce.

Indonesia’s main agricultural exports to the EU are palm oil, cocoa and coffee, none of which the EU produces. Meanwhile, the EU exports primarily dairy and other animal products to Indonesia. The EU and Indonesian agricultural sectors are thus highly complementary, allowing each side to specialise in the products they produce best. Therefore, the CEPA will lead to hardly any new imports of agri-food goods which the EU produces domestically, while at the same time opening new export opportunities for EU farmers in Indonesia.

EU health is not negotiable

The EU has very stringent standards to protect human, animal and plant health. Any product sold in the EU must comply with all these standards, which do not change at all with this agreement: products imported from Indonesia under the agreement will have to respect these standards.