Jakarta. The Indonesian government has stepped up engagement with the European Union and ambassadors from EU member states to strengthen economic ties and accelerate the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

“We expressed our appreciation to the EU Delegation and the ambassadors of EU member states for joining us on this occasion. We see the IEU-CEPA as a game changer to strengthen trade, investment, supply chain diversification, and bilateral economic resilience in the ASEAN and Indo-Pacific regions,” Chief of Economic Affairs Minister Airlangga Hartarto said in Jakarta on Friday.

If implemented early next year, the IEU-CEPA would give Indonesia duty-free access to 90.4% of tariff lines immediately, while tariffs on another 8.37% would be phased down. The agreement is expected to expand exports of palm oil, footwear, coffee, furniture, agricultural and fishery products, and telecommunications services.

For the European Union, the agreement would provide broader access to Indonesia's market for European industries and consumers, as well as access to more competitive supplies of products.

“The English version of the IEU-CEPA documentation is nearing completion, and we are targeting October for the signing. After it is signed, it will be submitted to the European Parliament for ratification,” Airlangga said.

“In Indonesia, the Trade Minister has consulted with the House of Representatives. Indonesia will use a presidential regulation mechanism, as this has already been discussed with the House, which should allow for faster implementation,” he added.

Indonesia expects the ratification of the IEU-CEPA to unlock greater investment inflows into the country. The government is encouraging European investment in high-value-added sectors, including advanced manufacturing, renewable energy, electric vehicles, digital industries, and pharmaceuticals, to support technology transfer and domestic industrial transformation.

“Europe is now also one of Indonesia's important investment partners. In recent months, Indonesia has received many visits from European countries, and they have brought large business delegations,” Airlangga said.

According to Airlangga, Indonesia's Generalised Scheme of Preferences (GSP) is set to expire at the end of this year. The swift ratification of the IEU-CEPA is therefore expected to help minimize any potential gap before the agreement takes effect.

European Union Ambassador to Indonesia and Brunei Darussalam Denis Chaibi welcomed Indonesia's initiative to convene the dialogue.

“This is a fantastic opportunity for EU member states to express their political commitment to signing the CEPA as soon as possible and to follow through with the ratification process, as explained by Minister Airlangga,” Chaibi said.

“Ratification will generate strong interest among European companies in investing in Indonesia,” he added.

Chaibi agreed that Indonesia could see more visits from European ministers, business delegations, and even royal families in the future, partly to explore the opportunities created by the IEU-CEPA.

European Commissioner for Trade and Economic Security Maros Sefcovic is also expected to visit Indonesia in late October or early November.

“Meetings such as this also allow EU member states to engage more closely with the relevant ministries so that we can prepare for the implementation of the CEPA and unlock the investment potential mentioned by Minister Airlangga,” Chaibi said.

“We are also very pleased that APINDO has proposed a Joint Task Force, allowing businesses to participate in CEPA preparations both at the technical level and through bilateral engagement with EU member states,” he added.

Among those attending the dialogue were Trade Minister Budi Santoso and Deputy Industry Minister Faisol Riza, along with senior officials from the Coordinating Ministry for Economic Affairs, the Coordinating Ministry for Food Affairs, the Foreign Affairs Ministry, the Trade Ministry, and the Industry Ministry.

The meeting was also attended by ambassadors from Germany, Sweden, Ireland, Belgium, the Netherlands, Portugal, Greece, Poland, and Slovakia; deputy heads of mission from Denmark, Finland, Cyprus, France, Spain, Italy, Bulgaria, and Croatia; as well as representatives from the Czech and Austrian embassies.

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