ASIATODAY.ID, BRUSSELS — Indonesia and the European Union are accelerating efforts to finalize and ratify the long-awaited Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), with both sides targeting implementation in early 2027.
The commitment was reaffirmed during a bilateral meeting between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and European Union Trade Commissioner Maros Sefcovic on the sidelines of the in Brussels on June 5.
“We are targeting the ratification process of IEU-CEPA to be completed in the second half of 2026 so that implementation can begin in early 2027,” Airlangga said.
The agreement is regarded as a strategic milestone in strengthening economic relations between Indonesia and the EU by expanding market access, increasing trade flows, and encouraging investment cooperation.
Both parties agreed to push forward the remaining procedural and legal steps required to complete the ratification process on schedule. Discussions also covered preparations for the upcoming visit of and Commissioner Šefčovič to Jakarta.
One of the most significant benefits of the agreement is the elimination of tariffs on approximately 98 percent of tariff lines. For Indonesia, the deal is expected to provide broader access to the European market through zero-duty treatment for most Indonesian exports, enhancing the competitiveness of Indonesian products and supporting export growth.
Beyond trade, the meeting also explored cooperation under the EU’s Global Gateway initiative, particularly in strategic investment projects and the development of critical mineral supply chains.
Indonesia is currently accelerating its downstream industrialization agenda to increase the value of its natural resources, while the EU is seeking secure supplies of strategic minerals needed for the energy transition and green technology industries.
“We also discussed investment opportunities through various strategic programs, including the development of the critical minerals sector, which is a priority for both sides,” Airlangga added.
The meeting underscored the shared commitment of Indonesia and the European Union to deepen mutually beneficial economic cooperation.
The successful ratification of IEU-CEPA in the second half of 2026 is expected to mark a major step forward in bilateral economic relations and pave the way for full implementation of the agreement in early 2027. (Midwan)
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