Indonesia targets IEU CEPA ratification completion in second half of 2026

Indonesia is targeting the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) ratification by the second half of 2026, with implementation expected in early 2027. Coordinating Minister for Economic Affairs Airlangga Hartarto met with EU Trade Commissioner Maroš Šefovi in Brussels to advance the process.

The IEU CEPA is considered a vital tool for strengthening economic ties between Indonesia and the EU. Its ratification is crucial for businesses in both regions to benefit from the agreement, which features the elimination of tariffs on about 98% of trade items. This will significantly expand market access for Indonesian exports to the EU, offering zero-tariff rates on a majority of national export commodities.

Beyond the trade deal, the meeting also addressed the EU's Global Gateway program. Discussions focused on supporting strategic projects, including investments and development in critical mineral sectors. This aligns with Indonesia's push for resource downstreaming and the EU's need for strategic mineral supplies to fuel its energy transition and green technology industries. Both sides are exploring investment cooperation opportunities in these key areas.