Cikarang. Negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) are facing delays as the EU keeps introducing new demands, particularly due to the challenges posed by the Deforestation Regulation (EUDR).

"We have already met many requests, but if more keep coming, it complicates matters. We aim to finalize the IEU-CEPA, but it depends on the EU's cooperation," Trade Minister Zulkifli Hasan said in Cikarang, West Java, on Thursday.

He reaffirmed Indonesia's commitment to completing the IEU-CEPA, originally expected to be finalized before the new administration takes office. However, this hinges on reaching an agreement.

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After nine years of stalled discussions, the IEU-CEPA has entered its 19th round of negotiations, with the initial deadline of September 2024 likely to be missed.

Zulkifli pointed out that Indonesia has informed the EU that the negotiations cannot conclude during President Joko Widodo's tenure and rejected claims of issuing an ultimatum.

"We're not giving an ultimatum; we're just making it clear. The new government (led by President-elect Prabowo Subianto) may find it even more difficult," Zulhas explained.

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Djatmiko Bris Witjaksono, Director-General of International Trade Negotiations at the Ministry of Trade, indicated that the prolonged talks stem from a lack of consensus on policy issues from both parties, particularly the EUDR.

Indonesia has expressed serious concerns regarding the EUDR, which could restrict its palm oil exports to Europe. The regulation mandates geolocation coordinates for palm oil production to ensure it does not come from deforested areas. Coffee and timber are also affected, with the EUDR set to take full effect on December 30, 2024.

Despite these challenges, both Indonesia and the EU have committed to several aspects of the agreement, including a gradual reduction of tariff instruments.

In 2023, trade between Indonesia and the EU reached $30.8 billion, with exports from Indonesia totaling $16.7 billion, making palm oil one of the country’s top exports to Europe.