PALMOILMAGAZINE, BRUSSELS – Indonesia and the European Union are stepping up efforts to finalize the ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), a landmark trade pact expected to significantly strengthen economic ties, expand market access, and boost investment flows between the two regions.
The commitment was reaffirmed during a bilateral meeting between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and European Union Trade Commissioner Maros Sefcovic on the sidelines of the Brussels Economic Security Forum in Brussels, Belgium, on Friday (June 5, 2026).
During the meeting, both sides discussed the next steps required to ensure the ratification process remains on schedule and can be completed by the targeted timeframe.
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“We aim to complete the ratification process of the IEU-CEPA in the second half of 2026 so that implementation can begin in early 2027,” Airlangga said, as quoted by Palmoilmagazine.com from the Ekon website on Monday (June 8).
The two parties agreed to accelerate the remaining procedures necessary for ratification while also discussing preparations ahead of the planned visit of European Commission President Ursula von der Leyen and EU Trade Commissioner Maros Sefcovic to Jakarta.
The IEU-CEPA is regarded as a key instrument for deepening economic cooperation between Indonesia and the European Union. As such, both parties consider the timely completion of the ratification process a priority to ensure businesses on both sides can begin benefiting from the agreement as soon as possible.
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One of the agreement’s most significant provisions is the elimination of tariffs on approximately 98% of tariff lines. For Indonesia, the deal is expected to provide broader access to the European market through zero-duty treatment for the vast majority of its exports.
The tariff reductions are anticipated to enhance the competitiveness of Indonesian products in Europe, support export growth, and create new opportunities for businesses across various sectors.
In addition to the IEU-CEPA, Airlangga and Sefcovic also discussed the European Union’s Global Gateway initiative, which is designed to support strategic projects, including investments in critical minerals development.
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Cooperation in the critical minerals sector presents substantial opportunities, particularly as Indonesia continues to accelerate its downstream processing strategy to increase domestic value addition. At the same time, the European Union is seeking reliable supplies of strategic minerals to support its energy transition goals and the expansion of green technology industries.
“We also discussed investment cooperation opportunities through various strategic programs, including the development of the critical minerals sector, which is a priority for both sides,” Airlangga added.
The meeting underscored the shared commitment of Indonesia and the European Union to strengthen a mutually beneficial economic partnership. With ratification targeted for completion in the second half of 2026 and implementation expected to commence in early 2027, the IEU-CEPA is poised to become a major milestone in bilateral economic relations, fostering greater trade, investment, and long-term economic cooperation between the two regions. (P3)
