Indonesia and the European Union have finalized a comprehensive trade agreement after nine years of negotiations, aimed at boosting trade and investment. The deal removes import duties on 98.5% of EU goods exported to Indonesia, with the EU saving approximately 600 million euros annually in tariffs. Indonesian goods will enjoy zero tariffs in 90% of the EU market, enhancing exports of palm oil, coffee, textiles, and other products. The agreement is projected to double trade within five years, with trade volume reaching $30.1 billion in 2024. Additionally, the EU has secured a discreet access to Indonesia’s alcohol market, allowing European wine and spirits to be imported under modest quotas — 1,985 tonnes for wine and 400 tonnes for spirits — with a 5% duty. Due to Indonesia’s cultural and religious sensitivities, Brussels has kept this provision low-profile, avoiding publicity about the alcohol trade aspect of the deal. The deal targets tourism hubs like Bali, where alcohol demand is higher, especially with increasing Australian visitors. While Indonesia’s overall alcohol consumption remains very low and heavily restricted, the move signifies a symbolic shift and a potential new avenue for European exporters. The agreement also aims to facilitate supply chain diversification, particularly for critical minerals, and to attract European investment into Indonesia’s renewable energy and electric vehicle sectors. However, non-tariff barriers such as the EU Deforestation Regulation remain a concern for industries like palm oil. The trade accord is seen as a strategic win for Europe, despite the quiet handling of alcohol market access, reflecting sensitive diplomatic balancing.