Indonesian government is accelerating the signing and ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), with the goal of bringing the trade pact into force in early 2027.
The agreement is expected to create new opportunities for Indonesian exports and investment in the European market.
The Coordinating Ministry for Economic Affairs is also pushing ahead with negotiations and implementation preparations for several free trade agreements and comprehensive economic partnerships.
In addition to IEU-CEPA, the government is advancing the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA) and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA).
According to Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, IEU-CEPA marks an important milestone in expanding trade and investment ties between Indonesia and the European Union.
“It is important to maintain the positive momentum of the IEU-CEPA process through stronger coordination and diplomacy with EU institutions. Accelerating the signing process must also be followed by ratification and implementation preparations so that businesses on both sides can benefit from the agreement as soon as possible,” Haryo said in a statement on Monday (October 19, 2026).
Indonesia Eyes Billions in Additional Exports
Substantive negotiations on IEU-CEPA were completed in September 2025, while the legal scrubbing process was finalized in August 2026. Both sides are now working through the final stages before the agreement is formally signed.
According to impact assessments conducted for Indonesia’s free trade and economic partnership agreements, IEU-CEPA is projected to boost Indonesia’s exports by as much as USD 10.9 billion.
Meanwhile, the I-CA CEPA is expected to generate approximately USD 1.6 billion in additional exports, while the I-EAEU FTA could increase exports by between USD 2.2 billion and USD 2.89 billion.
The government plans to maximize these opportunities through an Export Potential Analysis approach aimed at narrowing the gap between export potential and actual export performance across key commodities.
For the European Union, EFTA countries, and the United Kingdom, Indonesia’s main export opportunities include palm oil, motor vehicles, coffee, cocoa, rubber, iron and steel, processed wood products, and fisheries products.
Source: IDXChannel
