IEU-CEPA Enters Final Stage, Government Targets Implementation in Early 2027
The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is entering its final stage towards signing and ratification after a negotiation process lasting nearly a decade.
The government is targeting IEU-CEPA to be signed in late September or early October 2026 and to begin implementation in early 2027.
This development was discussed at the Indonesia-European Union High-Level Dialogue led by Coordinating Minister for Economic Affairs Airlangga Hartarto together with a number of ambassadors and representatives of EU member states in Jakarta on Friday (21/8/2026).
Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto said IEU-CEPA is expected to become an instrument to strengthen market access, investment, and trade relations between Indonesia and the European Union.
“The meeting took place a day after Coordinating Minister Airlangga received a visit from Germany’s Minister for Economic Cooperation together with 15 energy companies. The high level of interest from European businesses demonstrates the significant opportunities for strengthening Indonesia-EU economic and investment relations through IEU-CEPA,” Haryo said in a press release received by Kompas.com on Saturday (22/8/2026).
Haryo explained that, based on information from the Indonesian Ambassador to the EU, the IEU-CEPA text is currently in the hands of the Council of the European Union.
Once signed, the IEU-CEPA text will be submitted to the European Parliament to undergo the ratification process.
The government estimates that the ratification process could take around 90 days, referring to the precedent of the EU-Mexico agreement.
With these stages, the government is optimistic that IEU-CEPA can enter into force in early 2027.
Accelerating implementation is considered important because the EU’s Generalized System of Preferences (GSP) facility for Indonesia will expire at the end of 2026.
Indonesian businesses hope that IEU-CEPA can enter into force before the facility expires so that continuity of market access and business certainty can be maintained.
In addition to encouraging faster ratification, the ambassadors and representatives of EU member states emphasised the importance of implementation readiness.
EU countries also highlighted a number of non-tariff barriers, including halal certification, the Indonesian National Standard (SNI), and local content requirements (TKDN).