How the IEU–CEPA Will Boost Indonesian Palm Oil and Plantation Commodities in Europe
- Rajiv Garg
- Sep 25, 2025
- 2 min read
Bali, September 25, 2025 – Palm oil and other plantation products were at the heart of a high-level meeting in Bali between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and the European Commission’s Trade and Economic Security Commissioner, Maroš Šefčovič.
The meeting marked a big step forward in the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU–CEPA), which aims to strengthen trade and investment ties between the two regions.
Why This Matters?
Minister Airlangga explained that the negotiations are a direct follow-up to the political agreement made between Indonesia’s President and the European Commission’s President in July.He highlighted that most key issues—such as market access, tariffs, investment services, and trade facilitation—have already been addressed. The focus now is on ratifying and implementing the deal quickly so that Indonesian commodities can benefit.
“Ratification and implementation must be expedited so the benefits can be realized, especially for Indonesia’s priority commodities,” Airlangga said.
Opportunities for Commodities and MSMEs
Commissioner Šefčovič pointed out that palm oil, cocoa, textiles, and footwear are among the commodities that will gain the most from this agreement. European businesses are already showing growing interest in investing in Indonesia.
The talks also highlighted the role of agricultural MSMEs (micro, small, and medium enterprises). Airlangga stressed that small-scale farmers and producers must see real benefits, not just large companies. Opportunities in digital trade—such as e-logistics, e-payments, and ASEAN–EU digital connectivity—were also discussed as ways to help MSMEs compete globally.
Šefčovič added, “MSMEs must remain central to international trade, just as in the EU where 99% of companies are MSMEs.”
What’s Next?
The meeting concluded with a joint signing announcing the Substantial Conclusion of IEU–CEPA Negotiations, followed by the Indonesia–EU Business Outlook Forum.
The deal is expected to:
Strengthen the competitiveness of Indonesian plantation commodities in the European market
Expand market access for palm oil and other key exports
Unlock new investment opportunities in downstream industries
With this agreement moving closer to ratification, Indonesia is positioning itself to secure a stronger role in global trade while ensuring its small-scale producers share in the benefits.
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