InfoSAWIT, JAKARTA – According to data from the Ministry of Trade, the European Union (EU) is Indonesia's fifth-largest export destination and third-largest source of imports. From January to November 2024, Indonesia's exports to the EU reached US$ 16 billion, while imports from the EU amounted to US$ 11.6 billion, with total trade reaching US$ 27.6 billion. Throughout 2023, total trade between the two countries was recorded at US$ 30.8 billion.
Key export commodities from Indonesia to the EU include palm oil and its derivatives, copper ore, industrial fats, footwear, and other solid residues. Meanwhile, Indonesia imports motor vehicles, pharmaceuticals, freight transport vehicles, and industrial machinery from the EU.
In terms of investment, the EU ranks as the eighth-largest source of foreign direct investment (FDI) in Indonesia, with an investment value of US$ 2.33 billion in 2023, an increase of 11 percent compared to the previous year.
To support trade in commodities between both parties, Deputy Minister of Trade Dyah Roro Esti Widya Putri held a meeting with more than 20 business actors from the European Union-ASEAN Business Council (EU-ABC), led by EU-ABC Secretary Gustaaf Reerink in Jakarta on Thursday, February 6.
During the meeting, the Indonesian government reaffirmed its commitment to creating a conducive business environment to accelerate national economic development, including through closer partnerships with the EU.
"The EU plays a crucial role for Indonesia, especially in promoting trade and investment across various sectors, from renewable energy to digital transformation. We believe that Indonesia and the EU can continue to strengthen mutually beneficial collaboration," Deputy Minister Roro stated in an official statement quoted by InfoSAWIT on Friday, February 14, 2025.
Accelerating IEU-CEPA Negotiations
One of the main focuses of this meeting was to accelerate the negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). According to Deputy Minister Roro, the IEU-CEPA negotiations are in the final stages, and both parties are committed to concluding the agreement soon, which will open broader trade and investment opportunities.
On this occasion, Deputy Minister Roro also outlined three main programs of the Ministry of Trade: domestic market protection, export market expansion, and the UMKM (Micro, Small, and Medium Enterprises) Ready to Adapt, Ready to Innovate (BISA) Export program. The government targets a 7.1 percent increase in exports this year and hopes that business actors can actively contribute to achieving this target.
"As the fourth-largest trading partner for Indonesia and the eighth-largest source of investment in 2023, the EU has significant potential to further intensify trade and investment cooperation," she emphasized.
With the continuously developing cooperation potential, this meeting is expected to accelerate the realization of more inclusive and sustainable trade policies for both parties. (T2)
