EU trade relations with Indonesia. Facts, figures and latest developments.
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 on 18 July 2016. Eleven 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.
The EU is negotiating an FTA with Indonesia with the aim of facilitating new market access, increasing trade and investment between the EU and Indonesia, and promoting sustainable development.
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.
Following successful exploratory discussions to further deepen EU-Indonesia trade and investment relations, negotiations for an EU-Indonesia FTA were launched on 18 July 2016. The ambition is to conclude a 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.
A Sustainability Impact Assessment (SIA) in support of FTA negotiations between the EU and Indonesia was launched in 2018 and concluded in 2020. The SIA assessed how trade and trade-related provisions in the proposed FTA could potentially impact economic, social, human rights and environmental elements in each trading partner and in other relevant countries.
The final report and the Commission position paper can be found on the dedicated Sustainability Impact Assessments page.
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 5th 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).
More information on ASEAN
Today, the EU imposed anti-subsidy duties on imports of stainless steel cold-rolled flat products originating in Indonesia and also India.
Today, the EU has requested the establishment of a panel at the WTO to seek the elimination of unlawful export restrictions imposed by Indonesia on raw materials necessary for the production of stainless steel, notably nickel ore and iron ore.
Today, the Commission imposed definitive anti-dumping duties on imports of hot rolled stainless steel coils and sheets (SSHR) from Indonesia, China and Taiwan.
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