Brussel. Indonesia and the European Union are accelerating efforts to finalize the ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), a key initiative aimed at expanding market access, boosting trade, and strengthening investment cooperation between the two economies.

During a bilateral meeting on the sidelines of the Brussels Economic Security Forum in Brussels, Belgium, on Friday, Chief of Economic Affairs Minister Airlangga Hartarto and EU Trade Commissioner Maros Sefcovic discussed the next steps to ensure the ratification process remains on track for completion in the second half of 2026.

“We are targeting the ratification process for the IEU-CEPA to be completed in the second half of 2026, allowing implementation to begin in early 2027,” Airlangga said.

Both sides agreed to advance the necessary procedures to keep the ratification process on schedule. The discussions also covered preparations ahead of the planned visit of European Commission President Ursula von der Leyen and EU Trade Commissioner Maros Sefcovic to Jakarta.

The IEU-CEPA is regarded as a strategic instrument for strengthening economic ties between Indonesia and the European Union. As such, completing the ratification process has become a priority to ensure businesses on both sides can begin benefiting from the agreement.

One of the agreement's key provisions is the elimination of tariffs on around 98% of tariff lines. For Indonesia, the deal is expected to significantly expand access to the European market by providing zero-tariff treatment for most Indonesian exports, enhancing the competitiveness of domestic products and supporting national export growth.

In addition to the IEU-CEPA, Airlangga and Maros discussed the European Union's Global Gateway program, which is designed to support strategic projects, including investments in the critical minerals sector.

The sector presents significant opportunities for cooperation as Indonesia continues to accelerate its natural resource value-added industrialization strategy to increase domestic value creation, while the European Union seeks reliable supplies of strategic minerals to support its energy transition and green technology industries.

“We also discussed investment cooperation opportunities through various strategic programs, including the development of the critical minerals sector, which is a priority for both sides,” Airlangga said.

The meeting reaffirmed the commitment of Indonesia and the European Union to deepen a mutually beneficial economic partnership. The completion of the IEU-CEPA ratification process in the second half of 2026 is expected to mark a significant milestone in bilateral economic relations and pave the way for the agreement's full implementation in early 2027.

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