TEMPO.CO, Jakarta - Deputy Trade Minister Dyah Roro Esti said the European Union has begun to soften the European Union Deforestation Regulation (EUDR) against Indonesia. "This is a positive sign of compromise in the negotiation process," Dyah told reporters at the Parliament Complex on Monday, July 14, 2025.
This is in line with the decision to accelerate the conclusion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
According to Roro, Indonesia can now boost exports of prominent products such as footwear to the European Union after gaining open market access there. "It is a market that highly emphasizes sustainability, and we have renewable energy," she said, but stopped short at mentioning what products are being referred to.
The deputy minister also calls for beauty products and furniture exports to the European Union countries, which she believes have high potential. She hopes that market diversification can be an alternative post U.S.-imposed tariffs.
Roro did not specify the exact time when the trade agreement would reach a consensus but did not rule out the possibility that the agreement could be reached in the third quarter of this year.
Previously, Trade Minister Budi Santoso said that the acceleration of the IEU-CEPA agreement has led the European Union to soften regulations on exports, such as the EUDR. "Others have actually relaxed and compromised, as they certainly hope to partner with us in the future," said Budi in a video statement uploaded on the President's Secretariat's YouTube channel on Saturday, July 12, 2025.
Budi explained that there are no substantial issues causing the IEU-CEPA negotiations to progress slowly, as the talks have been underway since 2016. "Negotiation is about bargaining. So, reaching a mutually beneficial agreement is sometimes not easy," said Budi.
According to Budi, the IEU-CEPA presents a significant opportunity as an alternative market for Indonesia. He stated that the global import transaction value of the European Union could reach US$6.6 trillion, while the import value of the United States is only around US$3.3 trillion.
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