Indonesia to gain wider access to EU market for palm oil

Indonesia expects to significantly expand access for its products, including crude palm oil, to the EU market once the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) enters into force. Negotiations on the agreement were concluded in September 2025, with implementation expected in 2027.

Once the agreement takes effect, zero tariffs will immediately apply to 90.4% of Indonesia’s tariff lines. Another 8.37% will benefit from gradual tariff reductions combined with tariff-rate quotas. The new trade terms are expected to improve access to the European market for a range of Indonesian products, including palm oil, coffee and other agricultural goods.

Indonesia is the world’s largest producer and exporter of palm oil, so improved trade conditions with the EU could strengthen the position of its products in the European market. However, the terms cited do not indicate that palm oil itself will necessarily be among the products receiving immediate duty-free access once the agreement takes effect.

Indonesian Trade Minister Budi Santoso expects the IEU-CEPA to be signed by the end of October 2026. The government is coordinating the final preparations with the European Union and its member states, with the agreement expected to enter into force in early 2027.

The IEU-CEPA text was submitted to the Council of the EU on August 22. Following its signing, the agreement will be sent to the European Parliament for ratification. According to the Indonesian side, the process could take around 90 days under the fastest scenario, allowing implementation of the trade agreement to begin as early as the start of next year.

Tags: Indonesia, EU, palm oil