HIPMI Welcomes Acceleration of IEU-CEPA Ratification
The Indonesian Young Entrepreneurs Association (HIPMI) has welcomed the government’s move to accelerate the ratification process of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in order to expand national export access to the European market. The government is targeting completion of the agreement’s ratification in the second half of 2026, so that implementation can begin in early 2027. The trade deal is projected to eliminate tariffs on more than 98 percent of tariff lines. Trade in goods between Indonesia and the European Union was previously recorded at around 27.3 billion euros in 2024.
The increasingly open market access is considered to bring fresh opportunities for a number of national flagship commodities, such as coffee, cocoa, rubber, textiles, footwear, fishery products, furniture and electronic components.
“HIPMI welcomes the acceleration of IEU-CEPA. After market access becomes more open, our target is not only to sell more goods to Europe. We want more Indonesian companies to move up the value chain, have global standards, and build international business networks,” said Ade Jona Prasetyo, Chairman of the Central Executive Board of the Indonesian Young Entrepreneurs Association (BPP HIPMI).
Although tariffs have the potential to reduce export cost burdens, meeting the European Union’s quality standards, product safety, certification and sustainability aspects remains a fundamental challenge that domestic businesses must prepare for.
“Tariffs may fall, but if our products do not yet meet standards, certification costs are high, or entrepreneurs do not have access to buyers, the opportunities will not be maximised. So once negotiations are complete, the next task is to prepare the business community,” said Ade Jona Prasetyo.
To maximise the impact of this trade agreement, HIPMI has identified four key aspects that need attention: accelerating certification, competitive export financing, expanding buyer access through business matching, and consistently increasing production capacity.
“Many of our entrepreneurs have good products. The challenges often lie in production scale, quality consistency, financing, certification and market access. If we can overcome these obstacles, more Indonesian entrepreneurs will be able to become exporters,” said Ade Jona Prasetyo.
In addition to encouraging the outward flow of goods, the trade agreement is considered to have the potential to attract European investment in the manufacturing, technology, green energy, electric vehicle, electronics and pharmaceutical sectors, which could trigger technology transfer and strengthen the competitiveness of domestic industry.
“We want Indonesia-Europe economic relations to run in both directions. More Indonesian products enter Europe, while European investment and technology come in to strengthen our industrial capacity. In this way, the benefits of IEU-CEPA do not stop at trade, but also help increase national economic productivity,” explained Ade Jona Prasetyo.
The young entrepreneurs’ organisation also expressed its readiness to assist in mapping the potential of MSMEs and regional entrepreneurs so that they can directly penetrate the global supply chain.
“The measure of success later will not simply be how much exports increase. We must look at whether new exporters emerge, whether MSMEs move up the value chain, whether Indonesian medium-sized companies develop into global players, and whether incoming investment strengthens domestic industry,” said Ade Jona Prasetyo.
“IEU-CEPA opens a big door. Now our task is to ensure that Indonesian entrepreneurs have the capacity to enter, compete and grow in the global market,” said Ade Jona Prasetyo.