The Indonesian government and the European Union are targeting the completion of the comprehensive economic cooperation agreement or Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) in the second or third quarter of 2026. This stage will be the final process of the IEU CEPA trade agreement, the discussions of which have been going on for 9 years, since the first round of negotiations took place in 2016.
Director General of International Trade Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono said that the process of completing the trade agreement still needs more time, because each European country this year must complete the legal review process, until the completion of the agreement procedure per member country regarding the agreement document resulting from the negotiations.
“The EU is because it has 27 countries, so they need a much longer time than Indonesia. So, the ambitious target of Q1 next year can be completed or at the latest maybe Q2. Well then later after it is completed then we can sign it,” said Djatmiko during the Dissemination of IEU CEPA Negotiation Results event at the Coordinating Ministry for Economic Affairs Office, Jakarta, Friday (13/6/2025).
After the IEU CEPA signing process is completed in the second or third quarter of next year, Djatmiko said, the ratification process of the agreement will begin immediately. Only in the fourth quarter of 2026 to the first quarter of 2027 can the implementation of all agreements be implemented and utilized by each country.
One of the main benefits of implementing the IEU CEPA is the significant elimination of import tariffs. Within 1-2 years after the agreement comes into effect, as many as 80% of Indonesia’s exports to the European Union will enjoy 0% tariffs. Leading commodities such as labor-intensive products (footwear, textiles, garments), palm oil, fisheries, as well as renewable energy and electric vehicles will receive fairer preferential treatment.
The European Union itself is Indonesia’s fifth largest trading partner, with a total trade value reaching USD30.1 billion in 2024. The trade balance continues to record a surplus for Indonesia, increasing significantly from US$2.5 billion in 2023 to US$4.5 billion in 2024.
June 13, 2025, detikFinance
(https://www.cnbcindonesia.com/news/20250613161754-4-640857/hore-eropa-ri-dagang-bebas-tarif-mulai-2026)