KBRN, Jakarta: European investors are exploring industrial zones in Indonesia’s Greater Jakarta (Jabodetabek) area ahead of the 2026 IEU‑CEPA ratification, attracted by tariff cuts and new market opportunities in textiles, mining, technology, and machinery.

“During our survey, several European investors have started exploring the industrial market in Jabodetabek,” said Arief Rahardjo, Director of Strategic Consulting at Cushman & Wakefield Indonesia, during an online press conference on Wednesday, December 17, 2025, as quoted by Antara.

The sectors expected to benefit from potential industrial development in Jabodetabek include textiles, mining, technology, and industrial machinery, he added.

Indonesian Trade Minister Budi Santoso said the IEU‑CEPA ratification process is on track, with legal drafting underway and translations being prepared. “If signatures are completed in January, we aim to ratify it in parliament and finish by mid-next year,” he said, emphasizing the opportunity for Indonesian businesses to expand into the European market.

The Coordinating Ministry for Economic Affairs highlighted that IEU‑CEPA could help Indonesia achieve eight percent economic growth by 2029.

Ferry Irawan, Deputy for Coordination of State-Owned Enterprises Management and Development at the Cooperatives Ministry, noted that the agreement would open broader market access for Indonesian products in the EU. It also offers benefits such as tariff reductions for most Indonesian exports, boosts to national economic value, and easier visa procedures through fast-track policies. ***