Airlangga Confident IEU-CEPA Will be Finalised This Year, Aiming to Boost German Investment
The Indonesian government is optimistic that the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) can be signed this year. This trade agreement is expected to create greater opportunities for trade and investment, including from Germany.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the IEU-CEPA serves as a vital instrument to strengthen Indonesia’s economic relations with the European Union. Following the signing, the government aims for the ratification process to proceed so that implementation can commence by early 2027.
“The CEPA creates market access, as well as stronger trade and business engagement between Indonesia and the European Union. We certainly hope that this can also be utilised by German businesses and German investment,” Airlangga said during his congratulatory remarks at the German Unity Day 2026 in Jakarta on Friday (2/10/2026).
The push for the IEU-CEPA comes amidst government efforts to strengthen economic ties with Germany. In 2025, the bilateral trade value between Indonesia and Germany was recorded at approximately US$6.11 billion.
Germany also remains one of Indonesia’s key industrial partners. Airlangga noted that more than 250 German multinational companies are currently operating in Indonesia.
“There is still room to expand cooperation across various sectors, ranging from industry and infrastructure, trade and investment, energy, digital transformation, health, and life sciences, to human resource development,” he said, as reported by the official website on Saturday (3/4/2026).
Opportunities for cooperation are also open in the technology and energy sectors. Indonesia sees potential for collaboration with Germany in the development of renewable energy, electrical infrastructure, electric vehicles and batteries, semiconductors, digital infrastructure, and sustainable finance.
The strengthening of Indonesia-Germany economic relations is further supported by several bilateral mechanisms, including the Indonesia–Germany Joint Economic Commission (JEIC) and the Just Energy Transition Partnership (JETP).
“The momentum of the relationship between the two nations has grown stronger following the state visit of German President Frank-Walter Steinmeier to Indonesia in June 2026. During that visit, both countries reaffirmed their commitment to strengthening cooperation in economy, investment, energy transition, education, and employment,” he added.
With the IEU-CEPA expected to be finalised soon, the government sees an opportunity to ensure that economic relations between Indonesia, Germany, and the European Union extend beyond mere trade to drive broader business engagement and investment.