Following nine years of negotiations, the economic cooperation agreement under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) is nearing completion. The Coordinating Minister for Economic Affairs, Airlangga Hartarto, has reported that negotiations between Indonesia and the European Union have reached an agreement and are in the final stages of completion. On 6 June 2025, the finalisation of the IEU CEPA was discussed in a meeting between Airlangga and European Union Commissioner for Trade and Economic Security Maros Šefčovič in Brussels, Belgium. The Indonesian government is committed to concluding negotiations with potential partner countries to open markets, increase trade and investment, as well as reduce tariffs and non-tariff trade barriers.
Indonesia and the European Union have reached a consensus to utilise the current climate of global uncertainty as a catalyst to conclude the nine-year negotiations, which have encompassed 19 main rounds. According to Airlangga, the commodities produced by Indonesia and the European Union do not directly compete with each other, and it is believed that they can therefore strengthen the global supply chain. The European Union is Indonesia's fifth-largest trading partner. In 2024, the total trade value between Indonesia and the European Union reached USD 30.1 billion. The European Union's trade balance with Indonesia has shown a consistent surplus in favour of the latter. The surplus for Indonesia increased significantly, reaching USD 4.5 billion in 2024, up from USD 2.5 billion in 2023. The Indonesia-EU CEPA agreement will provide Indonesia with another advantage in that it will eliminate tariffs on 80% of Indonesian export products entering the European Union. This facilitation will take effect within 1 to 2 years of the agreement coming into force. The Government will be announcing the results of the IEU CEPA negotiations in the near future.
Source: https://www.tempo.co/ekonomi/airlangga-perundingan-ieu-cepa-capai-kesepakatan--1673055
