EU Commissioner Sefcovic flies to Indonesia to finalise trade deal.
Securing access to a new market would be a win for the EU Commission, which is pursuing a trade diversification agenda since relations soured with the US following its imposition of tariffs. EU Trade Commissioner Maroš Šefčovič landed in Indonesia on Monday with the hope of closing a trade deal with Jakarta. “The intention certainly is to finalise
political negotiations for an EU-Indonesia trade agreement,” Commission deputy chief spokesperson Olof Gill said. Last July, Commission President Ursula von der Leyen reached a political agreement with her Indonesian counterpart President Prabowo Subianto, confident of concluding the negotiation in September this year. By closing such a deal, the EU would secure access to a new market of around 280 million people. Bilateral trade in goods between EU and Indonesia reached €27.3 billion in 2024, with EU exports worth €9.7 billion and EU imports worth €17.5 billion. The bloc would also strengthen its position in the region, since Indonesia was the EU’s fifth-biggest ASEAN trading partner in 2024. India considered a 'tough' negotiator Increasing trade access to new markets has become EU’s top priority following the decision of its historic trade partner the US to impose tariffs on EU imports. Under a trade agreement reached in July by the Commission and the US administration, 15% tariffs apply to most EU goods, while 50% tariffs continue to apply to imports of EU steel and aluminium. The EU has since stepped up efforts to strengthen economic ties with the rest of the world. It reached a political deal with the Mercosur countries - Argentina, Brazil, Paraguay and Uruguay – in December, which if approved by EU member states and MEPs would create a free trade area covering 780 million people. The Commission is also aiming to finalise a landmark agreement with India this year. The talks have accelerated at the beginning of September with the Agriculture file reaching the negotiation table . But as Šefčovič noted on 12 September, New Delhi is a “tough” negotiator, and a swift outcome is not guaranteed.
