Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is targeted for completion by September 2025. According to Airlangga, the government and EU Commissioner for Trade and Economic Security, Maros Sefcovic, are finalizing the legal drafting phase. “The legal drafting process is ongoing. The target is to finish it this year,” Airlangga said, adding that the completed legal documents must be approved by all 27 EU member states and Indonesia. This marks the final stage of a negotiation process that has spanned nine years and included 19 main negotiation rounds and intense recent dialogues.

Airlangga emphasized that once implemented, the IEU-CEPA will eliminate tariffs on 80% of Indonesian exports to the EU within one to two years, benefiting key sectors such as labor-intensive industries (footwear, textiles, garments), palm oil, fisheries, renewable energy, and electric vehicles. In 2024, the EU was Indonesia’s fifth-largest trading partner, with bilateral trade reaching USD 30.1 billion and Indonesia recording a surplus of USD 4.5 billion. The EU has focused negotiations on strategic topics like local content (TKDN), automotive, critical minerals, and investment incentives. Both parties have reached mutual understanding on the main issues and are preparing to report the final outcomes to President Prabowo Subianto and the President of the European Commission.

Source:
https://infobanknews.com/ieu-cepa-ditarget-rampung-september-2025-80-persen-ekspor-bebas-tarif/