Indonesia is accelerating the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), with the government targeting ratification in the second half of 2026 and implementation in early 2027.
PALMOILMAGAZINE, JAKARTA — Indonesia is accelerating the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) as the government seeks to expand market access for Indonesian products and strengthen trade and investment ties with the European Union.
The push follows an instruction from President Prabowo Subianto during a meeting with senior ministers at the Presidential Palace complex in Jakarta on September 22, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
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Airlangga said the agreement is being prepared for the next stage of the European Union’s approval process, including the completion of the English-language documentation required for submission to the European Parliament.
“President also asked that the IEU-CEPA be completed soon, because the IEU-CEPA is currently being processed with the necessary materials in English to be brought to the European Parliament,” Airlangga said in a press briefing following the meeting, as quoted by PalmOilMagazine from Ekon on Thursday (Sept. 24).
The Indonesian government has previously set a target for the ratification process to be completed in the second half of 2026, with implementation expected to begin in early 2027.
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The agreement has been under negotiation for nearly a decade and, according to the Coordinating Ministry for Economic Affairs, had entered its final stage toward signing and ratification by August 2026. The government has said the agreement could strengthen market access, investment and bilateral economic cooperation.
Under the agreement, Indonesia is expected to gain broader access to the European market, while the EU would also receive improved access to the Indonesian market. Government documents have said the deal could eliminate tariffs on around 98% of tariff lines, although implementation will depend on the completion of the required ratification procedures.
Airlangga said preparations for the next stage would continue alongside closer communication between Indonesia and the EU.
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EU Commissioner for Trade and Economic Security Maroš Šefčovič is scheduled to visit Indonesia, while a visit by European Commission President Ursula von der Leyen is also planned for late October or early November, according to Airlangga.
“There is indeed a plan for Commissioner Maroš to come to Indonesia, and there is also a plan for the President of the EU to come to Indonesia in late October or early November,” Airlangga said.
For Indonesia, the IEU-CEPA is expected to provide a broader framework for expanding exports to the European market and attracting investment. The agreement also covers market access for key Indonesian products, including palm oil, footwear, textiles and fisheries products.
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The government expects the ratification process to proceed in the second half of 2026, paving the way for the IEU-CEPA to enter into force in early 2027. (P3)
