The Government of Indonesia has addressed the UN General Assembly, pledging that Indonesia aims to achieve net-zero emissions before 2060. The country’s shift from fossil fuels to renewable energy, noting that most new power generation capacity from 2026 onward will come from renewables.
Further, Indonesia and the European Union (EU) finalised the Indonesia–EU Comprehensive Economic Partnership Agreement (CEPA), ending nine years of negotiations. The deal eliminates up to 98 per cent of tariffs, expected to double trade volume and boost sectors such as palm oil, clean energy, electric vehicles, textiles, and fisheries. EU exporters will save an estimated EUR600 million on chemicals, machinery, automobiles, and food products, while Indonesian exports will benefit from improved access to the European market.
However, challenges remain, particularly the EU Deforestation Regulation (EUDR), which requires commodities like palm oil to prove they are deforestation-free. Indonesian officials emphasised the need to include smallholder farmers in the supply chain to fully benefit from the CEPA. The EU also postponed EUDR enforcement to the end of 2025. The agreement represents the EU’s third trade pact with Southeast Asia, following Singapore and Vietnam, and is expected to accelerate clean energy cooperation and investment in Indonesia.