Indonesia-European Union CEPA enters key approval phase: Minister

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto announced significant progress in talks surrounding the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEUCEPA), noting the European Commission’s move to submit a conclusion proposal at the EU Council.

The proposal also covers the Investment Protection Agreement (IPA), marking a crucial stage in the years-long negotiations.

“Indonesian President Prabowo Subianto hopes this development will serve as a game changer for the global market,” Airlangga remarked, as cited in a statement here on Friday.

He added that, as Southeast Asia’s largest economy, Indonesia is well positioned to work with the European Union to expand markets and generate broader economic growth benefiting both Europe and the Indo-Pacific region.

According to the minister, IEUCEPA and IPA now await approval from the Council of the EU before being tabled at the European Parliament for final endorsement and entry into force.

At the same time, he continued, the Indonesian government has been working on ratification in accordance with national mechanisms to pursue timely implementation of the IEUCEPA.

“Our target is to complete the IEUCEPA ratification process in the second half of 2026 to allow for implementation by early 2027,” he said.

Airlangga further explained that the EU views both agreements as strategic instruments to diversify economic partnerships, strengthen trade and investment ties with strategic partners, open new export avenues, and bolster the resilience of energy and raw material supply chains.

Meanwhile, Indonesia aims to leverage the IEUCEPA to penetrate deeper into European markets, enhance product competitiveness, attract quality investments, and strengthen its position in global value chains.

Under the agreement, the EU will eliminate import duties on 98.5 percent of tariff lines; simplify procedures for Indonesian exports; explore potential investment in strategic sectors such as electric vehicles, electronics, and pharmacy; and strengthen protection for intellectual properties and supply chains.

Airlangga expressed confidence that the rollout will drive up industrial productivity, expand job creation, and spur more inclusive and sustainable economic growth.

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Translator: Bayu Saputra, Tegar Nurfitra

Editor: Azis Kurmala

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