Government targets IEU-CEPA ratification by October 2026

Jakarta (ANTARA) - The government is targeting the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) document to be signed by October 2026.

“On the progress of IEU-CEPA, the documentation in the English version is nearing completion and is targeted for October; hopefully it can be signed. After it is signed, it will be brought to the EU Parliament to obtain ratification,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at a press conference in Jakarta on Friday.

After the ratification process, the trade cooperation framework will be brought to each parliament for deliberation.

Airlangga said a Presidential Regulation will be issued to make IEU-CEPA a priority in discussions at the House of Representatives (DPR RI).

Once the implementing regulation in the form of a Government Regulation is issued, IEU-CEPA is expected to enter into force from the beginning of 2027.

Furthermore, Coordinating Minister Airlangga assessed that the implementation of the trade agreement will be a game changer for Indonesia because it opens wider market access for both parties.

“This is a game changer for Indonesia, with several benefits from market access where 90 percent of Indonesia’s tariff lines will immediately become 0 percent, and this will be reduced gradually,” he explained.

“Indonesia certainly hopes that with the ratification of this agreement, it will open or unlock investment potential that will enter Indonesia, because Europe is now also one of Indonesia’s investment partners in various sectors,” Airlangga added.