Jakarta (ANTARA) – Indonesia’s upcoming trade agreement with the European Union will deliver its highest tariff commitments in any trade pact, Trade Minister Budi Santoso said.Speaking at an IEU-CEPA implementation dialogue in Jakarta on Friday, Budi said the agreement would significantly expand access for Indonesian products to Europe at competitive tariff rates.Once implemented, the deal will liberalize about 98 percent of tariff lines, covering 99.5 percent of total import value between Indonesia and the EU.The tariff cuts are expected to give Indonesian exporters access to the EU’s 450 million consumers and its combined gross domestic product of about US$22 trillion.Several key Indonesian exports, including palm oil and derivatives, textiles, footwear and rubber products, will receive zero tariffs when the agreement takes effect.In return, Indonesia will eliminate tariffs on major EU exports, including wood pulp, aircraft and components, railway equipment and fertilizers.“For Indonesia, this tariff commitment level is the highest ever set in a trade agreement,” Budi said in a statement.Budi said the pact would help expand European market access, attract investment into strategic sectors, strengthen Indonesia’s role in global supply chains and deepen economic ties.Beyond tariffs, the agreement aims to simplify trade procedures and improve business certainty through digitalization, faster customs clearance, standards cooperation and sanitary and phytosanitary measures.It also covers institutional cooperation and capacity building, including clearer governance rules for state-owned enterprises and environmental sustainability.The Trade Ministry is coordinating with other ministries and agencies to finalize legal documents, align domestic regulations and ensure technical readiness before implementation.Indonesia and the EU began negotiations in 2016 and reached a substantial agreement in September 2025.Both sides are finalizing internal procedures, targeting a signing in the fourth quarter of 2026, followed by parliamentary ratification and implementation.