Jakarta. Indonesia is stepping up efforts to accelerate three major trade agreements with the European Union, Canada and the Eurasian Economic Union (EAEU), aiming to expand market access for domestic products and unlock billions of dollars in potential export growth.

The Coordinating Ministry for Economic Affairs is prioritizing the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA) and the Indonesia-EAEU Free Trade Agreement (I-EAEU FTA), while encouraging exporters to make greater use of preferential market access offered by existing and upcoming trade deals.

Chief Economic Affairs Minister Airlangga Hartarto has called for diplomatic efforts to accelerate the ratification of IEU-CEPA, with the government targeting its entry into force in early 2027.

Ministry spokesman Haryo Limanseto said the agreement represented an important opportunity to deepen trade and investment ties between Indonesia and the EU. He stressed that preparations for ratification and implementation should move forward alongside efforts to finalize the signing process.

“Maintaining the positive momentum in concluding IEU-CEPA requires stronger coordination and diplomacy with EU institutions. Accelerating the signing process must also be followed by preparations for ratification and implementation so that businesses on both sides can benefit from the agreement as soon as possible,” Haryo said.

Indonesia and the EU reached a substantive conclusion to negotiations in September 2025 and completed legal scrubbing in August 2026, bringing the agreement closer to signing. In June 2026, the European Commission submitted its proposal on IEU-CEPA to the Council of the European Union for approval of its signing and conclusion.

The Indonesian Embassy in Brussels, which also represents Indonesia in Belgium, Luxembourg and the EU, has maintained intensive communications with European stakeholders, including European Commissioner for Trade and Economic Security Maroš Šefčovič, to help expedite the bloc’s internal procedures. Both sides are working toward signing the agreement before the end of 2026.

Billions in Export Potential
Impact analyses indicate that the three trade agreements could significantly expand Indonesia’s exports. IEU-CEPA has the potential to increase exports by $10.9 billion, while I-CA CEPA could generate an additional $1.6 billion and I-EAEU FTA between US$2.2 billion and $2.89 billion.

These projections underscore the potential of trade agreements to deliver benefits beyond tariff reductions, creating opportunities for Indonesian businesses to expand sales in markets where demand remains untapped.

Export potential analyses have identified significant gaps between current export values and the levels that Indonesian products could potentially achieve in partner markets.

In the EU, the European Free Trade Association (EFTA) and the United Kingdom, key opportunities include palm oil and its derivatives, motor vehicles, coffee, cocoa, rubber and rubber products, iron and steel, processed wood and fisheries products.

For Canada, promising export categories include minerals and metals, chemicals, vehicles, wood and rubber products, machinery and electrical equipment. The I-CA CEPA could also help Indonesian businesses expand sales of food and beverages, seafood, footwear, processed wood, electronics, automotive products and handicrafts.

In the EAEU market, opportunities are concentrated in chemicals, plant-based products, vehicles, minerals and metals, as well as wood, paper, rubber and plastics. Products such as palm oil, footwear, shrimp, natural rubber, coffee and essential oils are also expected to benefit from improved tariff opportunities under I-EAEU FTA.

The government is seeking to translate these opportunities into greater utilization of trade agreements by Indonesian exporters, helping businesses identify suitable products, assess market demand and take advantage of preferential tariffs.

Expanding Strategic Economic Cooperation
Beyond trade in goods, Indonesia is also seeking to strengthen its economic partnership with the EU in strategic sectors, including semiconductors, technology and the creative economy.

The government expects closer cooperation in these areas to open new investment opportunities, strengthen domestic industrial capabilities and support the development of Indonesia’s innovation and technology ecosystem.

Haryo said coordination between the Indonesian government and its representatives in Brussels would be important both to advancing IEU-CEPA and to deepening economic cooperation with EU member states.

These efforts are intended to accelerate the realization of the agreement’s benefits while laying the groundwork for a closer and more sustainable economic partnership between Indonesia and the EU.

For Indonesian businesses, the next step will be to turn improved market access into concrete export growth by identifying opportunities, strengthening competitiveness and preparing to meet the requirements of international markets.

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