After nearly a decade of negotiations, the European Union and Indonesia have officially reached a political agreement on a comprehensive free trade agreement (FTA), marking a major milestone in bilateral economic relations.

The new FTA will be developed under the framework of a comprehensive economic partnership and is expected to create significant benefits for both sides. According to European Commission President Ursula von der Leyen, the deal will open up new markets, stimulate growth, and provide greater development potential for key sectors in both the EU and Indonesia. Industries such as agriculture, automotive, and services are expected to gain the most from the agreement.

European and Indonesian companies alike will have improved access to each other’s markets, enabling easier expansion and deeper economic cooperation. Negotiations between the EU and Indonesia began in 2016, as both sides sought to strengthen economic ties and promote sustainable growth. The final agreement is expected to be formally signed and ratified in the coming months.