Apindo pushes for joint task force to ensure IEU-CEPA ratification

Now, we must shift our focus from negotiation toward opportunity and partnership,

Jakarta (ANTARA) - The Indonesian Employers Association (Apindo) is pushing for the formation of a joint task force for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

The task force is expected to serve as a government-business community collaborative mechanism to ensure the agreement is ratified on schedule.

Apindo Chairperson Shinta Kamdani, in an official statement confirmed in Jakarta on Wednesday, stated that the proposal was a key outcome of the Apindo Business Mission to Europe 2026, which took place from June 11 to 19 across Amsterdam, The Hague, Brussels, and Paris.

Apindo assesses that the post-negotiation phase of the IEU-CEPA is a critical stage to ensure that the agreement provides tangible benefits to businesses.

Following the substantial conclusion of the agreement in September 2025, the next focus is on completing the legal finalization and ratification process to ensure effective implementation.

"Now, we must shift our focus from negotiation toward opportunity and partnership," she said.

Furthermore, the association stressed the growing urgency of implementing the IEU-CEPA, given that Indonesia’s current European Union Generalized Scheme of Preferences (GSP) benefits are set to expire on December 31, 2026.

Starting January 1, 2027, Indonesia is scheduled to graduate from the Standard GSP beneficiary list after being classified as an upper-middle-income country for several consecutive years.

If the GSP benefits expire before the IEU-CEPA takes effect, several Indonesian exports could face the EU's higher Most Favored Nation (MFN) tariffs rates, increasing trade costs.

As a result, Apindo views the IEU-CEPA as a strategic instrument that will not only replace the GSP facility but also secure long-term market access certainty, strengthen supply chain integration, boost investment, and unlock broader economic cooperation between Indonesia and the EU.

"This agreement must serve as a platform to boost investment, capacity building, technology and knowledge transfer, industrial development, business certainty, and the competitiveness of Indonesian businesses," she said.

In addition to the joint task force proposal, Apindo's mission also yielded several strategic follow-up agendas, including strengthening support for agreement implementation, maximizing the utilization of the IEU-CEPA post-ratification, and deepening dialogue on the EU Deforestation Regulation (EUDR).

"Apindo is ready to work with the Indonesian government, the European Union, and all stakeholders to ensure that the ratification and implementation of the IEU-CEPA proceed on schedule and deliver tangible benefits to both economies," Shinta said.

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Translator: Ahmad Muzdaffar, Raka Adji

Editor: M Razi Rahman

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