IEU-CEPA to Expand Market Access for Indonesian Products

Indonesia is preparing to turn its completed trade negotiations with the European Union into a deal that could open wider markets for palm oil, footwear, coffee, furniture, agricultural and fishery products, and telecommunications equipment.

Edi Prio Pambudi, deputy for economic cooperation and investment coordination at Indonesia’s Coordinating Ministry for the Economy, said the Indonesia-European Union Comprehensive Economic Partnership Agreement, known as IEU-CEPA, is now in its preparatory phase. Negotiations concluded in September 2025, with the government working toward entry into force in 2027.

Once implemented, 90.4 percent of Indonesia’s tariff lines would receive zero tariffs immediately. Another 8.37 percent would benefit from phased tariff cuts and Tariff Rate Quota facilities. Edi said the agreement could create opportunities for both Indonesia and Ireland, whose government will hold the presidency of the Council of the European Union from July 1 through December 31, 2026.

Indonesia says it wants to judge its economic relationship with Ireland and the wider European Union by more than trade totals. The government also points to investment quality, innovation, job creation, technology transfer and opportunities for people in both countries. It plans to work with the Irish government, businesses and relevant institutions to turn the commitments into concrete economic benefits.

Trade Minister Budi Santoso said Indonesia remains optimistic that the agreement can be signed by the end of October 2026 and take effect in early 2027. The government has met ambassadors of EU member states in Jakarta to discuss implementation, while acknowledging that the administrative process will take time because the EU has 27 members. The agreement’s text was with the EU Council as of August 22. After signing, it will go to the European Parliament for ratification. The ministry said the fastest possible ratification could take about 90 days, citing the EU-Mexico agreement as a precedent.

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This will strengthen market access for various Indonesian products, including palm oil, footwear, coffee, furniture, agricultural and fishery products, and telecommunications equipment.