Indonesia’s Coordinating Ministry for Economic Affairs projects that the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will increase exports to the EU by more than 50%. The agreement eliminates tariffs on 98% of Indonesian products, including apparel, bananas, palm oil, coffee, cocoa, rubber, fishery products, timber, textiles, electronics, and processed wood, enhancing competitiveness and market access across Europe.
The pact, concluded after 10 years of negotiations, is expected to contribute significantly to Indonesia’s goal of 8% economic growth by 2029. Beyond tariff reductions, it also aims to simplify visa procedures and expand trade opportunities for state-owned enterprises. The government plans to ratify the agreement in January 2026, marking a decisive step toward full implementation and strengthening Indonesia’s international trade presence.
