The Indonesian Young Entrepreneurs Association (HIPMI) has welcomed\nthe government\u2019s move to accelerate the ratification process of the\nIndonesia-European Union Comprehensive Economic Partnership Agreement\n(IEU-CEPA) in order to expand national export access to the European\nmarket. The government is targeting completion of the agreement\u2019s\nratification in the second half of 2026, so that implementation can\nbegin in early 2027. The trade deal is projected to eliminate tariffs on\nmore than 98 percent of tariff lines. Trade in goods between Indonesia\nand the European Union was previously recorded at around 27.3 billion\neuros in 2024.<\/p>\n
The increasingly open market access is considered to bring fresh\nopportunities for a number of national flagship commodities, such as\ncoffee, cocoa, rubber, textiles, footwear, fishery products, furniture\nand electronic components.<\/p>\n
\u201cHIPMI welcomes the acceleration of IEU-CEPA. After market access\nbecomes more open, our target is not only to sell more goods to Europe.\nWe want more Indonesian companies to move up the value chain, have\nglobal standards, and build international business networks,\u201d said Ade\nJona Prasetyo, Chairman of the Central Executive Board of the Indonesian\nYoung Entrepreneurs Association (BPP HIPMI).<\/p>\n
Although tariffs have the potential to reduce export cost burdens,\nmeeting the European Union\u2019s quality standards, product safety,\ncertification and sustainability aspects remains a fundamental challenge\nthat domestic businesses must prepare for.<\/p>\n
\u201cTariffs may fall, but if our products do not yet meet standards,\ncertification costs are high, or entrepreneurs do not have access to\nbuyers, the opportunities will not be maximised. So once negotiations\nare complete, the next task is to prepare the business community,\u201d said\nAde Jona Prasetyo.<\/p>\n
To maximise the impact of this trade agreement, HIPMI has identified\nfour key aspects that need attention: accelerating certification,\ncompetitive export financing, expanding buyer access through business\nmatching, and consistently increasing production capacity.<\/p>\n
\u201cMany of our entrepreneurs have good products. The challenges often\nlie in production scale, quality consistency, financing, certification\nand market access. If we can overcome these obstacles, more Indonesian\nentrepreneurs will be able to become exporters,\u201d said Ade Jona\nPrasetyo.<\/p>\n
In addition to encouraging the outward flow of goods, the trade\nagreement is considered to have the potential to attract European\ninvestment in the manufacturing, technology, green energy, electric\nvehicle, electronics and pharmaceutical sectors, which could trigger\ntechnology transfer and strengthen the competitiveness of domestic\nindustry.<\/p>\n
\u201cWe want Indonesia-Europe economic relations to run in both\ndirections. More Indonesian products enter Europe, while European\ninvestment and technology come in to strengthen our industrial capacity.\nIn this way, the benefits of IEU-CEPA do not stop at trade, but also\nhelp increase national economic productivity,\u201d explained Ade Jona\nPrasetyo.<\/p>\n
The young entrepreneurs\u2019 organisation also expressed its readiness to\nassist in mapping the potential of MSMEs and regional entrepreneurs so\nthat they can directly penetrate the global supply chain.<\/p>\n
\u201cThe measure of success later will not simply be how much exports\nincrease. We must look at whether new exporters emerge, whether MSMEs\nmove up the value chain, whether Indonesian medium-sized companies\ndevelop into global players, and whether incoming investment strengthens\ndomestic industry,\u201d said Ade Jona Prasetyo.<\/p>\n
\u201cIEU-CEPA opens a big door. Now our task is to ensure that Indonesian\nentrepreneurs have the capacity to enter, compete and grow in the global\nmarket,\u201d said Ade Jona Prasetyo.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/hipmi-welcomes-acceleration-of-ieu-cepa-ratification-1787608212", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }