Daimler Readies New Strategy for Indonesia-EU Trade Agreement

JAKARTA, KOMPAS.com - The planned implementation of the Indonesia-Europe free trade agreement (IEU-CEPA) has received positive responses from domestic automotive industry players.

One party welcoming the commercial agreement is PT Daimler Commercial Vehicles Indonesia (DCVI). As the official distributor of Mercedes-Benz commercial vehicles in Indonesia, Daimler views the partnership as a long-awaited breath of fresh air to expand business opportunities.

“I see this as a significant opportunity. However, give us time as we are currently undergoing internal transformation,” Naeem said during an interview in Jakarta recently.

Despite welcoming the deal, DCVI stated it does not wish to rush into major steps. The industry still needs to study the technical documents of the agreement to understand specific regulations affecting the automotive sector.

“What does the agreement say about the automotive sector? Can we bring products from Europe here? Can we manufacture here? And what impact will it have on import duties? We still need to wait for these details,” he added.

Regarding implementation timelines, Daimler estimates the direct impact of the free trade agreement will only be felt by the industry ecosystem in several years. The Indonesian government is still expected to take time to finalise administrative and regulatory processes following the signing.

“For implementation, it is likely to begin around 2027. Let’s see what happens next,” Naeem said.