After the signing of the agreement, Indonesia and the EU will go through the ratification phase of the agreement through their respective procedures. Ultimately, this will lead to the implementation of the FLEGT VPA, which will take place when both parties consider the authorization.  The agreement contains detailed provisions on trade facilitation (Annex VI). Negotiations for a free trade agreement between the EU and Indonesia began on 18 July 2016 following fruitful exploratory discussions aimed at deepening trade and investment relations between the EU and Indonesia. The aim is to conclude a free trade agreement that facilitates trade and investment and covers a wide range of issues such as tariffs, non-tariff barriers, trade in services and investment, trade aspects of public procurement, competition rules, intellectual property rights and sustainable development. The treatment of IPs is no less favourable than at the national level. All measures that compromise piracy by IP must be avoided by the signatory countries. Intellectual property protection includes copyright, including computer programs, trademarks, geographic indicators (GIs), industrial designs, patents, plant varieties and undisclosed information. Indonesia is the sixth country in the region to enter into negotiations for a bilateral free trade agreement with the EU, after Singapore (2010), Malaysia (2010), Vietnam (2012), Thailand (2013) and the Philippines (2015). To date, the EU has concluded negotiations on bilateral agreements with two of them: Singapore (2014) and Vietnam (2015).
Bilateral free trade agreements between the EU and ASEAN countries will form the building blocks of a future EU-ASEAN agreement, which remains the EU`s ultimate goal. These bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. As the pandemic disrupted supply chains and ceased operations, trade in Indonesia slowed following the COVID-19 outbreak in March. Exports fell 5.49 per cent (yoy) in the first half of the year to $76.41 billion, while imports fell 14.28 per cent, according to Statistics Indonesia (BPS). The EU was Indonesia`s fourth largest trading partner with bilateral trade worth $26.9 billion in 2019. Former Trade Minister Enggartiasto Lukita said in August that he intended to recommend a 20-25% tariff on EU dairy products in retaliation for EU anti-dumping duties on Indonesian biodiesel exports.