Indonesia continues to push for acceleration of IEU-CEPA signing

Foreign Minister Sugiono has again pushed for the acceleration of the signing of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) during a meeting with EU High Representative for Foreign Affairs and Security Policy Kaja Kallas. “The signing of the IEU-CEPA is very strategic to strengthen trade, investment, and economic partnership between Indonesia and the EU,” Sugiono said during the meeting on the sidelines of the ASEAN Foreign Ministers’ Meeting and Dialogue Partners (AMM/PMC) in Manila on Thursday, as stated in a release from the Indonesian Ministry of Foreign Affairs. During the meeting, Indonesia and the EU also agreed to strengthen cooperation in the energy sector, particularly energy transition, renewable energy, and sustainable investment. “Indonesia has great potential in the development of renewable energy. Cooperation with the European Union is important to realise this potential,” Sugiono said. Responding to various regional and global issues, Sugiono and Kallas emphasised the importance of resolving conflicts through dialogue and diplomacy to achieve sustainable peace. Indonesia and the European Union have completed the substance of the IEU-CEPA negotiations in 2025 and are targeting the ratification process to be accelerated in the second half of 2026 so that the implementation of the agreement can begin in early 2027. Earlier in July, Coordinating Minister for Economic Affairs Airlangga Hartarto said the process had entered a crucial stage after the European Commission submitted a proposal for the signing and ratification of the IEU-CEPA along with the Investment Protection Agreement (IPA) to the Council of the European Union. If approved by the Council, both agreements will be submitted to the European Parliament for final approval before being ratified and entering into force. Concurrently, the Indonesian government is continuing the ratification process in accordance with national mechanisms. Through the IEU-CEPA and IPA, Airlangga noted that the EU will eliminate import duties on 98.5 percent of tariff lines, simplify export procedures for various products to Indonesia, and open investment opportunities in strategic sectors such as electric vehicles, electronics, and pharmaceuticals. For Indonesia, the implementation of the IEU-CEPA is expected to expand export market access to EU countries, enhance the competitiveness of national products, attract quality investment, and strengthen Indonesia’s integration into global value chains. The agreement is also expected to serve as a catalyst for increasing industrial productivity, job creation, and inclusive and sustainable economic growth.