TEMPO.CO, Jakarta - The economic cooperation framework under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) is nearing completion after nine years of negotiations. Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the negotiation efforts between Indonesia and the European Union have reached an agreement and are in their final stages.
The finalization of the IEU CEPA was a key topic in a meeting between Minister Airlangga and European Union Commissioner for Trade and Economic Security Maros Sefcovic in Brussels, Belgium, on Friday, June 6, 2025. The Indonesian government is also committed to ensuring that negotiations with other strategic and potential partner countries are finalized.
"The goal is to open markets, increase mutually beneficial trade and investment, and reduce trade barriers, both tariff and non-tariff," said Airlangga during a press conference via Zoom application on Saturday, June 7, 2025.
Indonesia and the European Union have agreed to leverage the current global uncertainty to conclude these nine-year negotiations and cover 19 major rounds. According to Airlangga, commodities produced by Indonesia and the European Union are largely non-competitive, suggesting that the agreement will strengthen global supply chains and world market supply.
The European Union stands as Indonesia's fifth-largest trading partner. In 2024, the total trade value between Indonesia and the European Union reached US$30.1 billion. The trade balance between the European Union and Indonesia has consistently recorded a surplus for Indonesia, which significantly increased from US$2.5 billion in 2023 to US$4.5 billion in 2024.
For Indonesia, the IEU CEPA agreement offers additional benefits, including the elimination of tariffs for 80 percent of Indonesian export products entering the European Union. This facilitation is expected to take effect within one to two years after the agreement is formally implemented.
The government plans to announce the results of the IEU CEPA negotiations with the European Union in due course. Airlangga will also report the outcome to President Prabowo Subianto soon.
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