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Indonesia's Coordinating Ministry for the Economy has revealed that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will substantially strengthen market access for a wide range of Indonesian export products.
Speaking at a press conference in Jakarta on Friday, as reported by ANTARA, Edi Prio Pambudi, Deputy for Economic Cooperation and Investment Coordination at the Coordinating Ministry for the Economy, said: 'This will strengthen market access for various Indonesian products, including crude palm oil, footwear, coffee, furniture, agricultural and fishery products, and telecommunications equipment.'
Pambudi noted that the IEU-CEPA is currently in its preparatory phase, following the conclusion of negotiations in September 2025, with the objective of bringing the agreement into force in 2027. Once implemented, 90.4 percent of Indonesia's tariff lines will immediately benefit from zero tariffs, while an additional 8.37 percent will enjoy gradual tariff reductions combined with Tariff Rate Quota (TRQ) facilities.
He highlighted that Ireland's presidency of the Council of the European Union, running from July 1 to December 31, 2026, presents a strategic opportunity to deepen bilateral economic ties between Indonesia and Ireland while reinforcing Indonesia's broader engagement with the EU bloc.
The Coordinating Ministry aims to evaluate Indonesia-Ireland economic relations not only through trade volumes but also through the quality of investment, innovation, job creation, technology transfer, and opportunities for people in both countries, Pambudi added.
Indonesia's Minister of Trade Budi Santoso expressed confidence that the IEU-CEPA could be signed by the end of October 2026, in line with the government's target for the agreement to take effect in early 2027. The government is actively coordinating with the European Union and its member states to finalize preparations, having met with ambassadors from EU member states in Jakarta the previous week. Santoso pointed out that the administrative process will require time, given that the EU comprises 27 member countries.
On August 22, 2026, the Coordinating Ministry for the Economy confirmed that the IEU-CEPA text had been transmitted to the European Union Council. Following its signing, the agreement will be forwarded to the European Parliament for ratification. According to the ministry, the fastest possible ratification process could take around 90 days, citing the European Union-Mexico agreement as a precedent, bolstering expectations that the IEU-CEPA could begin implementation in early 2027.
Source: Tempo.co