Economic break: EU deal with Indonesia could secure jobs in Austria!

Economic break: EU deal with Indonesia could secure jobs in Austria!

Yogyakarta, Indonesien - The industrial association (IV) welcomed the fundamental agreement to a trade agreement between the EU and Indonesia on July 13, 2025. The goal is to conclude the agreement until September 2025. The negotiations on this free trade agreement began in July 2016, which indicates a long and comprehensive phase of diplomatic and economic conversations. IV emphasizes the importance of strong economic policy impulses to open up new markets and strengthen the export industry, especially in times of economic uncertainty.

Austria has currently been in the longest recession since 1945, with falling economic growth and declines in the willingness to invest. The international competitive pressure increases and the geopolitical situation remains volatile. IV general secretary Christoph Neumayer points out that Austrian exports to Indonesia were 287 million euros in 2024. At the same time, Austrian companies have invested 648 million euros in Indonesia, which secures almost 2,000 jobs on site.

Details of the trade agreement

The planned trade agreement has the potential to strengthen the supply chains for critical raw materials that are of crucial importance for the European Clean-Tech and Stahl industry. With this agreement, the EU pursues the goal of creating new market access and promoting trading and investing between the EU and Indonesia. It is also sought to support sustainable development in the region. The European Commission is negotiating on behalf of all EU member states and regularly informs about progress. The official start of the negotiations dates to July 18, 2016, and the 19th round of negotiations took place in July 2024. The topics discussed include, among other things, the reduction of tariffs, the liberalization of trade in services and investments as well as the protection of intellectual property.

In addition to strengthening trade with Indonesia, the Mercosur Agreement plays an important role. It opens up new export opportunities for Austrian companies and further strengthens Europe's ability to act. The announcement of US President Donald Trump also increases the pressure on the trade to prove EU goods with tariffs of 30 percent from August, which increases the need for Europe.

progress in the negotiations

In the previous negotiating rounds, progress in the areas of economic cooperation, dispute resolution and in trade in services have already been made. A total of 15 rounds of negotiations have taken place since the beginning of the talks, the last of which took place in Yogyakarta in July 2023. In this round, 14 working groups were formed on various topics, but talks about market access and export tariffs have so far been unsuccessful. Internal consultations have to take place in Indonesia here to make progress.

The EU has presented Indonesia text proposals as a basis for discussion. These proposals are continuously updated and the final text of the agreement is published after the negotiations have been completed. All of these aspects show the complexity and the extensive implications of the upcoming trade agreement between the EU and Indonesia.

For further information on the negotiations and trade agreements between the EU and Indonesia, we refer to the reporting of EU and the WKO , which offers comprehensive details on the trade relationships.