Indonesia Targets IEU‑CEPA Ratification in Second Half of 2026

RRI.CO.ID, Jakarta - Indonesia and the European Union (EU) have agreed to accelerate progress toward the implementation of a strategic trade pact.

The government is targeting completion of the ratification process for the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU‑CEPA) this year, with implementation slated for early 2027.

Coordinating Minister for Economic Affairs Airlangga Hartarto said ratifying the IEU‑CEPA is a shared priority. The agreement is considered vital for strengthening economic ties and expanding Indonesia’s market access to Europe.

“We aim to complete the IEU‑CEPA ratification process by the second half of 2026 so that implementation can begin in early 2027,” Minister Airlangga said in Jakarta on Sunday, June 7, as quoted by Antara.

The target was discussed during a bilateral meeting between Minister Airlangga and EU Trade Commissioner Maroš Šefčovič on the sidelines of the Brussels Economic Security Forum in Belgium on Friday, June 5. Both parties agreed to accelerate the necessary steps to ensure ratification proceeds on schedule.

The talks were also prepared for upcoming visits to Jakarta by European Commission President Ursula von der Leyen and Commissioner Šefčovič, which are expected to further strengthen Indonesia–EU economic cooperation.

The IEU‑CEPA is projected to deliver significant benefits for national trade. A key provision is the elimination of tariffs on about 98 percent of tariff lines for both parties. For Indonesia, the zero‑percent tariff policy on most export products will broaden market opportunities in the EU, enhance competitiveness, and boost export growth.

Beyond trade, both sides also discussed investment opportunities under the EU’s Global Gateway program, with a focus on developing the critical minerals sector.

“We also discussed investment cooperation opportunities through various strategic programs, including the development of the critical minerals sector, which is of mutual interest,” Minister Airlangga said.

This cooperation aligns with Indonesia’s downstreaming of natural resources and the EU’s need for strategic mineral supplies to support the energy transition and green technology industries. ***