IEU-CEPA to Strengthen Market Access for Indonesian Products
Coordinating Ministry for the Economy revealed that IEU-CEPA strengthens access for various Indonesian goods.
The Coordinating Ministry for the Economy of Indonesia has announced that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) aims to enhance market access for various Indonesian products. Speaking at a press conference in Jakarta, Edi Prio Pambudi, Deputy for Economic Cooperation and Investment Coordination, stated that the agreement is currently in its preparatory phase, following the conclusion of negotiations in September 2025. The preparatory phase seeks to ensure the IEU-CEPA can enter into force by 2027.
Under the IEU-CEPA, Indonesia stands to gain zero tariffs on 90.4 percent of its tariff lines, while another 8.37 percent will experience gradual tariff reductions and Tariff Rate Quota (TRQ) facilities. Ireland's presidency of the Council of the European Union from July 1 to December 31, 2026, presents a vital opportunity to strengthen the economic relationship between the two nations, along with Indonesia's broader cooperation with the European Union.
Edi emphasized that the Coordinating Ministry for the Economy plans to evaluate Indonesia-Ireland economic ties not solely by trade value, but also by investment quality, innovation, job creation, technology transfer, and people-to-people opportunities. Indonesian Trade Minister Budi Santoso expressed optimism that the IEU-CEPA could be signed by the end of October 2026, aligning with the government's target for the agreement to take effect in early 2027.
Santoso confirmed that the government is actively preparing for the agreement's completion, including coordination with the European Union and its member states.
On July 22, 2026, the Coordinating Ministry for the Economy informed that the IEU-CEPA text was presented to the European Union Council. Upon signing, the text will be forwarded to the European Parliament for ratification. The ministry predicted that the ratification process, based on the European Union-Mexico agreement, could take approximately 90 days. The government remains confident that the IEU-CEPA could commence implementation in early 2027.
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