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Indonesia and EU finally seal landmark trade deal

02:39

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Georg Matthes
September 23, 2025

Indonesia and the EU are set to sign a landmark trade deal, ending almost a decade of negotiations. The pact scraps tariffs, standardizes licenses and certificates, and will shield against global trade tensions.

Indonesia’s textile industry is pushing for access to European markets amid rising competition and saturated domestic demand. A proposed EU-Indonesia trade agreement could eliminate tariffs on cotton linen — currently as high as 8% — offering relief to struggling manufacturers like those in Bandung, Java. The deal also touches on palm oil exports, navigating new EU deforestation laws while promising preferential treatment. With Vietnam and Singapore already benefiting from similar agreements, Indonesia hopes to boost trade and investment by up to 50% over the next five years. But final approval from both sides remains pending.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

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