Airlangga says IEU-CEPA enters crucial phase, awaits EU Council approval

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) process has entered a crucial phase after the European Commission proposed its signing and conclusion, along with an Investment Protection Agreement (IPA), to the Council of the European Union. He described this step as a significant milestone towards finalising the trade agreement, which has been under negotiation between Indonesia and the EU for years. President Prabowo Subianto hopes this can be a game changer for the global market. When Indonesia and the European Union work together to develop the market, Airlangga said he is confident it can bring a significant scale of growth to the EU and the Indo-Pacific region, where Indonesia is the largest economy in ASEAN. Following submission to the EU Council, the IEU-CEPA and IPA will be discussed for approval. Once approved, both agreements will be submitted to the European Parliament for final consent before they are officially ratified and enter into force. Meanwhile, the Indonesian government is continuing its ratification process according to national mechanisms to ensure implementation proceeds on target. The government is targeting the ratification process to be completed in the second half of 2026 so that implementation can begin in early 2027. For the European Union, the IEU-CEPA and IPA are part of a strategy to diversify economic partnerships, strengthen trade and investment ties with strategic partners, open new export opportunities, and enhance supply chain resilience for energy and raw materials. For Indonesia, the implementation of IEU-CEPA is expected to expand export market access to the EU, improve the competitiveness of national products, attract quality investment, and strengthen Indonesia’s position in the global value chain. Through the agreement, the EU will also eliminate import duties on 98.5 percent of tariff lines, simplify export procedures for various products to Indonesia, open investment opportunities in strategic sectors such as electric vehicles, electronics, and pharmaceuticals, and strengthen intellectual property rights protection and supply chain resilience. Airlangga assessed that the implementation of IEU-CEPA will serve as a catalyst for increasing national industrial productivity, job creation, and more inclusive and sustainable economic growth.