EU and Indonesia agree on trade agreement

The European Union and Indonesia have completed multi-year trade negotiations, which will allow the EU to expand supply chains and reduce dependence on the United States.

The official signing will be announced on September 23 during the visit of EU Foreign Trade Minister Maros Sefcovic to Jakarta. For the treaty to enter into force, the approval of the parliaments of both sides will be required.

The agreement will be part of the EU's large-scale strategy to diversify its trading partners: Brussels has already intensified negotiations with India and the countries of Southeast Asia, as well as completed a deal with the MERCOSUR bloc.

Indonesia, the largest economy in the region with a population of 300 million people, represents a promising market and source of raw materials for the EU. However, the relationship was complicated by EU environmental regulations restricting the import of products related to deforestation, including palm oil and coffee.