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pxhere.com Indonesia’s export tariff lines to the EU would immediately
receive zero tariffs while others will be reduced gradually.
The tariff concessions are expected to improve the
competitiveness of Indonesian products and create greater
opportunities for exporters to expand in the EU market.
Key potential beneficiaries include palm oil, footwear,

coffee, furniture, agricultural and fisheries products and
telecommunications services.
The government also expects the agreement to increase
bilateral trade and investment while providing Indonesian
Technology a key to boosting value businesses with greater opportunities to enter new markets
Indonesia’s wood industry is being urged to increase value- and expand their international operations.
added production and adopt modern technology to strengthen In related news, the Indonesian Employers Association
its competitiveness in global markets. (Apindo) has proposed establishing a joint task force to
Indonesian Sawmill and Woodworking Association (ISWA) oversee the ratification and implementation of the IEU-CEPA.

Chairman, Jimmy Chandra, said Indonesia’s abundant timber Apindo Chairman, Shinta Kamdani, said the task force
resources need to be supported by technological modernisation would operate at both the EU-wide technical level and the
and stronger export promotion, with the government playing level of individual EU Member States, helping ensure that
a key role in facilitating technology adoption and expanding agreed provisions are implemented effectively and identifying
overseas market access. market opportunities in each country.
He also highlighted the importance of government support The initiative is intended to strengthen coordination between
and export incentives. the Indonesian government and EU authorities while maximising

Meanwhile, Indonesian Wood Panel Association (APKINDO) the Agreement’s benefits for Indonesian businesses.
official, Tina Azizi, emphasised that technological capabilities Shinta also called for broader outreach on IEU-CEPA,
and the ability to capitalise on market opportunities are particularly to micro, small and medium-sized enterprises
increasingly essential. (MSMEs), which may be able to participate in European supply
chains but remain unaware of the Agreement’s potential benefits.
IEU-CEPA to deliver zero tariffs EU Ambassador to Indonesia, Denis Chaibi, welcomed the
The Indonesian government is accelerating implementation proposal, saying the joint task force could provide a platform
of the Indonesia-European Union Comprehensive Economic for EU member states and Indonesian authorities to coordinate
Partnership Agreement (IEU-CEPA) to expand export market implementation and ensure that businesses are involved not

access, increase EU investment and strengthen supply-chain only in technical preparations but also in bilateral discussions
diversification and economic resilience. with government officials.
Coordinating Minister for Economic Affairs, Airlangga Hartarto,
said the Agreement would significantly benefit Indonesia by Government accelerates customary forest recognition
eliminating or reducing tariffs on Indonesian products entering The Indonesian government is accelerating the recognition of
the EU market. customary forests to provide greater certainty over territories
If implemented at the beginning of 2027, 90 percent of managed by indigenous communities.