Indonesia Targets 2026 Ratification of IEU-CEPA to Secure Zero Tariffs for Exports to Europe

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the government is targeting the ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) this year. If the trade deal is finalised in 2026, the comprehensive economic cooperation policy with Europe can be implemented by early 2027. This agreement will allow Indonesian products to enter the European market with zero import duties, eliminating the current tariff barriers which average between 10% and 20%. To accelerate the ratification process, European Union representatives are scheduled to visit Indonesia in the third quarter of 2026. German Ambassador to Indonesia Ralf Beste previously expressed optimism that the IEU-CEPA could soon enter the ratification stage and come into force in 2027. Beste noted that there is strong support for the long-negotiated trade deal in both Europe and Indonesia, and he does not foresee any major obstacles that could disrupt the ratification process. Unlike some other trade agreements that have sparked debate in Europe, the IEU-CEPA enjoys broad support from various political groups within the European Union. Once implemented, the agreement is expected to serve as a new driver for increased trade and investment between Indonesia and EU member states, including Germany. The IEU-CEPA is a crucial instrument for strengthening economic relations, with its primary benefit being the elimination of tariffs on approximately 98% of trade items, thereby enhancing the competitiveness of Indonesian products in the European market.