The Coordinating Ministry for Economic Affairs emphasized that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will greatly enhance global market access for Indonesian exported goods.
Edi Prio Pambudi, the ministry’s Deputy for Economic Cooperation and Investment Coordination, mentioned in Jakarta that the significant trade agreement will support essential national commodities such as palm oil, footwear, coffee, furniture, agricultural and fishery products, along with telecommunications devices.
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As per the agreed conditions, 90.4 percent of Indonesia's tariff lines will encounter zero duties as soon as the agreement is implemented. Another 8.37 percent of tariff lines will gain from gradual tariff reductions and Tariff Rate Quota (TRQ) provisions.
"Following the completion of negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement in September 2025, we are now entering the preparation phase aimed at making the agreement come into force in 2027," Edi notes.
Edi emphasized the trade agreement's ability to enhance relations with specific member states, notably Ireland, which will hold the Presidency of the Council of the EU from July 1 to December 31, 2026.
"We believe that the Irish Presidency... provides an important opportunity to further strengthen economic cooperation between Indonesia and Ireland, as well as deepening Indonesia's involvement with the European Union more broadly," he noted, emphasizing that partnership metrics should focus on high-quality investment, innovation, job creation, and technology transfer.
Trade Minister Budi Santoso conveyed confidence that the formal signing of the IEU-CEPA will occur by the end of October 2026, maintaining the schedule for implementation in early 2027.
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Budi observed that Indonesian authorities recently convened with EU ambassadors in Jakarta to align administrative plans among the bloc's 27 member countries. The agreement's legal text was presented to the European Union Council on August 22, 2026. After the official signing, the document will be sent to the European Parliament for its final approval.
Indonesian authorities anticipate that the parliamentary approval process may require as little as 90 days, referencing the example established by the EU-Mexico trade deal.
Earlier, Indonesia is amplifying diplomatic initiatives to speed up the signing of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), portraying the agreement as a crucial economic link between Southeast Asia’s largest economy and the 27-member group.
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The revitalized effort arises as both parties strive for an ambitious schedule after finishing the substantial negotiations in 2025. Officials aim for ratification in late 2026, setting the stage for the IEU-CEPA to take effect in early 2027.