Indonesia and the European Union (EU) are nearing the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA). According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the negotiations have reached the 19th round, with only the chief negotiators left to conclude the discussions. Airlangga briefed President Joko Widodo on the progress, highlighting that the agreement is now in the final stages of drafting the I-EU CEPA law. The agreement covers various critical issues, including trade in goods, rules of origin, trade in services, trade safeguards, investment, government procurement, transparency, regulatory practices, dispute settlement, intellectual property rights, state-owned enterprises, economic cooperation, capacity building, the investment court system, subsidies, anti-fraud policies, energy, raw materials, small and medium enterprises, and technical barriers to trade.
Airlangga emphasized the importance of resolving any remaining issues promptly, with a target to finalize the agreement before October 2024. In 2022, the total trade between Indonesia and the EU reached USD 33.2 billion, with Indonesia exporting USD 21.5 billion worth of goods to the EU and importing USD 11.7 billion. Key exports from Indonesia to the EU included palm oil and its derivatives, industrial fatty acids, coal, copper, and leather footwear. Major imports from the EU consisted of iron and steel pipes, pharmaceuticals, vaccines, pulp-making machinery, and recycled paper or cardboard. Airlangga assured that any obstacles during the negotiations will be promptly addressed, as President Widodo has directed swift resolution of any issues that arise.
