Jakarta. Indonesia is pushing to conclude negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by the first half of 2025, a long-awaited deal aimed at deepening economic, trade, and investment ties between Southeast Asia’s largest economy and the European Union.

At present, a trade treaty between Indonesia and the EU is in the works, although years have passed since the negotiations began in July 2016. The pact’s deadline has been repeatedly pushed back, and Jakarta now intends to complete the comprehensive economic partnership agreement (CEPA) within the first semester of 2025. Indonesia reported that its trade surplus with the EU reached nearly $4.5 billion in 2024, almost double the $2.5 billion surplus recorded in 2023. Like most CEPAs, the agreement is expected to significantly reduce import tariffs on goods entering Europe, although the government will release full details once the deal is officially signed.

Chief Economic Affairs Airlangga Hartarto is scheduled to hold a virtual meeting with EU Trade Commissioner Maroš Šefčovič on Monday, May 5, to discuss final points of the agreement.

Deputy Foreign Minister Arif Havas Oegroseno noted that the two sides have undergone 19 rounds of negotiations, with discussions covering trade in goods, sustainable development, and responsible investment. “We’ve completed 19 negotiation rounds. God willing, we will finalize the agreement this year,” Arif told reporters on Friday.

Key commodities such as palm oil, cocoa, and coffee have featured prominently in the negotiations. Arif said cocoa, in particular, has become a concern due to declining plantation land and crop diseases in Africa, prompting Indonesia to import the commodity.

Edi Prio Pambudi, Deputy for Economic and Investment Cooperation at the Coordinating Ministry, emphasized that the agreement must be fair and reciprocal. While Indonesia is willing to grant market access, it expects equal treatment in return.

“We can’t just allow greater access to our markets without ensuring our interests are also protected,” he said. “Our domestic priorities must be recognized by the EU. Flexibility must go both ways.”

Edi added that Indonesia wants benefits equal to those granted to other EU trading partners, such as Vietnam. “Our benchmark is simple: we want the same benefits that countries like Vietnam receive,” he said. “This agreement is about expanding Indonesia’s market access in Europe.”

The Indonesian government is targeting substantive completion of the trade deal by the second quarter of 2025. A final legal review and document vetting process will follow.

“If we don’t finish by Q2, it’s going to drag on too long,” Edi said. “What matters now is reaching a substantive agreement. The rest --legal scrubbing and technical details-- can follow.”

The IEU-CEPA is expected to significantly boost Indonesia’s trade volume with the EU, currently one of its largest non-ASEAN trading partners, and help diversify export destinations.