Indonesia

The relationship between the EU and Indonesia has deepened over recent years. Following successful exploratory discussions, negotiations for an EU-Indonesia Free Trade Agreement (FTA) were launched in 2016. Nineteen rounds have been held so far.

The FTA aims at developing a key aspect of the overall relationship between the EU and Indonesia, which is framed by the Partnership and Cooperation Agreement. The agreement entered into force on 1 May 2014.

Indonesia is a member of the WTO since 1995 and benefits from trade preferences granted by the EU's Generalised Scheme of Preferences (GSP), under which about 30% of total imports from Indonesia enjoys lower duties.

Trade picture

• The EU is Indonesia’s fifth-largest trading partner (accounting for 6.4% of the country's total trade). Indonesia is the EU’s 33^rd biggest trading partner, and the EU’s fifth-biggest ASEAN trading partner in 2024. Bilateral trade in goods between the EU and Indonesia amounted to €27.3 billion in 2024, with EU exports worth €9.7 billion and EU imports worth €17.5 billion.  
• Bilateral trade in services between the EU and Indonesia amounted to €8.8 billion in 2023, with EU exports amounting to €5.7 billion and imports amounting to €3.1 billion.  
• In 2023, the EU's foreign direct investment (FDI) stock in Indonesia amounted to €25.1 billion, while Indonesia's FDI stock in the EU was €1.1 billion. 

The EU and Indonesia

Over many years, relations have been framed by the EC Cooperation Agreement with the Association of South East Asian Nations (ASEAN), which was formalised in 1980. On this basis, economic and political discussions have been held regularly. Bilateral dialogues between the EU and Indonesia have included periodic reviews of political, economic and co-operation issues in Senior Official Meetings.

A Framework Agreement on Comprehensive Partnership and Co-operation was signed on 9 November 2009 and entered into force on 1 May 2014. The Agreement provides the basis for holding regular political dialogue and sectoral cooperation and takes bilateral relations to a higher level. The Agreement provides the legal framework to engage and cooperate across a wide spectrum of policy fields, including human rights, political dialogue, and trade.

EU-Indonesia trade negotiations

Following successful exploratory discussions to further deepen EU-Indonesia trade and investment relations, negotiations for an EU-Indonesia FTA were launched in 2016. The ambition is to conclude an FTA that facilitates trade and investments and covers a broad range of issues, including tariffs, non-tariff barriers to trade, trade in services and investment, trade aspects of public procurement, competition rules, intellectual property rights as well as sustainable development.

Indonesia in ASEAN

Indonesia is one of the 10 members of the Association of South East Asian Nations (ASEAN), the largest economy in the region in terms of GDP (35%) and the EU’s fifth-largest trading partner in ASEAN. It is also one of the fastest growing economies in South East Asia (average GDP growth of approximately 6% in the past 10 years).

Indonesia is part of the Regional Comprehensive Economic Partnership (RCEP).

More information on ASEAN

Trading with Indonesia

• Importing into the EU from Indonesia
  • EU trade defence measures on imports from Indonesia
• Exporting from the EU to Indonesia
  • Trade defence measures in force in Indonesia
• Trade relations are part of the EU's overall political and economic relations with Indonesia
• Indonesia is a member of the World Trade Organization