Jakarta (VNA) – The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is set to be signed on September 23 after a decade of negotiations, according to Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.
Once the agreement is signed, the process will continue at the parliament of each party. He added, however, that it still requires approval from the parliaments of all 27 European Union member states to come into force.
Director General of International Trade Negotiations at the Indonesian Trade Ministry Djatmiko Bris Witjaksono highlighted that the entire administrative and legislative process in the EU might take up to 12 months.
In contrast, Indonesia is projected to ratify the IEU-CEPA in a shorter period, with the House of Representatives (DPR) expected to complete the process between the second and fourth quarters of next year, he continued.
He further stated that the economic pact could take effect in the first quarter of 2027, provided that all procedures run as expected.
The IEU-CEPA was launched in 2016 under former President Joko Widodo, and the completion of talks was announced by President Prabowo Subianto and European Commission President Ursula von der Leyen in Belgium in July 2024.
Minister Hartarto stressed that the trade agreement reflects the Indonesian government’s strategy to expand market access amid tariff barriers and global economic uncertainties. Alongside international expansion, he also highlighted the government’s commitment to strengthening domestic production and consumption through strategic policies.
According to Witjaksono, the agreement will open up new trade and investment opportunities for both the EU and Indonesia. The IEU-CEPA covers market access for goods, with both sides committing to eliminate tariffs on 98% of all tariffed products and 99% of total import value.
Indonesia’s key export items, such as textiles and palm oil, will enjoy significant advantages in accessing the European market./.
