Government Targets IEU CEPA Agreement to Enter into Force in Early 2027
The Indonesian government is targeting the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to begin implementation in early 2027. Coordinating Minister for Economic Affairs Airlangga Hartarto led a High-Level Dialogue with European Union ambassadors in Jakarta to oversee the signing and ratification process.
Ratification of the trade pact has become a key focus after Minister Airlangga received a visit from Germany’s Minister for Economic Cooperation, who brought along 15 energy companies. The move was taken in response to the high level of investment interest from European corporations in Indonesia.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, said the forum served as an important means of strengthening relations between the two parties.
“This meeting took place a day after Minister Airlangga received a visit from Germany’s Minister for Economic Cooperation accompanied by 15 energy companies yesterday. The high level of interest from the European business community demonstrates the significant opportunities for strengthening Indonesia-EU economic and investment relations through IEU-CEPA, which is expected to become one of the main vehicles for realising these opportunities,” said Haryo Limanseto.
The IEU-CEPA agreement text is currently with the Council of the European Union and is scheduled to be signed at the end of September or early October 2026. After signing, the document will be submitted to the European Parliament for ratification, a process estimated to take around 90 days.
Accelerating ratification is a priority given that the EU’s Generalized System of Preferences (GSP) tariff preference facility will expire at the end of 2026. Businesses require legal certainty and an extension of export market access before that deadline.
During the dialogue, EU representatives provided input on implementation effectiveness, including resolving non-tariff barriers, transparency in procurement, halal certification standardisation, Indonesian National Standards (SNI), and Local Content Requirements (TKDN). President Prabowo Subianto has tasked a debottlenecking team under the Coordinating Ministry for Economic Affairs and appointed a special official as a single contact point to follow up on these obstacles.
Haryo affirmed the government’s commitment to overseeing the implementation of the agreement so that it delivers optimal benefits for the national economy.
“The Indonesian government affirms that the completion of IEU-CEPA is an important achievement that needs to be followed by close cooperation at the implementation stage. With the support of all stakeholders, IEU-CEPA is expected to become a strategic instrument to expand market access, increase investment, strengthen competitiveness, and foster stronger and mutually beneficial economic relations between Indonesia and the European Union,” said Haryo Limanseto.