Airlangga Aims to Sign IEU-CEPA Documents This Week

Jakarta (ANTARA) – Coordinating Economic Affairs Minister Airlangga Hartarto is aiming for the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) documents to be signed this week.

The signing is needed to safeguard trade for Indonesian products in the EU market, following the end of the preferential tariff facility under the Generalised System of Preferences (GSP) on 1 January 2027.

“Our GSP facility will end. The GSP is granted to countries with low incomes, whereas we have entered the upper-middle-income category. So we are no longer entitled to receive GSP. That is why the solution is to sign the IEU-CEPA as soon as possible,” Airlangga said in Jakarta on Wednesday.

The GSP facility has so far given Indonesian products tariff advantages in the EU, making them more competitive than products from countries without similar benefits. However, Indonesia will no longer qualify for the facility next year.

Airlangga said he hoped the IEU-CEPA could be signed by the end of this week, allowing the documents to be submitted to the European Parliament in early November.

“If possible, it could be signed at the end of this week and submitted to the EU Parliament in early November 2026. Once it is with the EU Parliament, we will also ratify it in Indonesia,” he said.

The IEU-CEPA is targeted to enter into force in early 2027. Both sides are preparing the complete agreement documents in English before they proceed to discussions in the European Parliament and ratification in Indonesia.