Government Targets Indonesia-EU Trade Agreement to Apply in Early 2027

RRI.CO.ID, Jakarta – The Indonesian government aims for the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to officially apply in early 2027. The acceleration effort is part of a broader strategy of Indonesia to expand market access, increase investment, and enlarge global supply chains with strategic partners.

Currently, the European Commission has submitted proposals for signing the IEU-CEPA and the Investment Protection Agreement (IPA) to the Council of the European Union. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that it is time to establish a fair and mutually beneficial free trade relationship.

In a press release on July 2, 2026, the Minister noted that President Prabowo Subianto hopes the cooperation will serve as a major game-changer in the global market. Furthermore, the President believes this partnership will boost significant economic growth across the Indo-Pacific region.

"I believe it is time for us to develop free, fair, and mutually beneficial trade relations," Airlangga said. "Indonesian President Prabowo Subianto hopes this will be a game-changer for the global market to drive growth in the EU and the Indo-Pacific, where Indonesia is the largest economy in ASEAN."

Previously, the Indonesian government and the European Union successfully finalized the substance of the IEU-CEPA negotiations in 2025. The government now aims to complete the ratification process in the second half of 2026 so implementation can begin by early 2027.

Minister Airlangga stated, "We aim to complete the IEU-CEPA ratification process by the second half of 2026. This timeline ensures that the official implementation can begin smoothly in early 2027."

Through these two agreements, the European Union will eliminate import duties on 98.5% of tariff lines and simplify export procedures. For Indonesia, these changes are expected to expand access to export markets and attract high-quality investment.