Indonesia targets Nov 21 signing for IEU-CEPA trade pact
Photo caption: Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference in Jakarta on Thursday (November 5, 2026). (ANTARA/Bayu Saputra)
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has set a target for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to be officially signed on November 21, 2026, with the pact expected to enter into force by early 2027.
Speaking during a press conference in Jakarta on Thursday, Airlangga stated that both negotiating parties are currently finalizing the agreement documents in English ahead of the review process by the European Parliament and subsequent domestic ratification in Indonesia.
"To attract investment and achieve other objectives, we look forward to the implementation of trade agreements - such as the IEU-CEPA, which we hope to sign this month, specifically on November 21," Airlangga said.
The government has accelerated efforts to conclude the agreement in order to safeguard trade access for Indonesian products in the European Union market.
The urgency follows the scheduled expiration of the Generalised System of Preferences (GSP) - a special tariff facility - on January 1, 2027.
The GSP facility has historically provided Indonesian goods with tariff advantages, enhancing their competitiveness in European markets compared to products from countries lacking similar benefits.
Securing the IEU-CEPA before the facility expires is viewed as crucial to maintaining stable trade channels and supporting long-term economic growth.
Once implemented, the IEU-CEPA is expected to liberalize approximately 98 percent of tariff lines, covering 99.5 percent of the total value of bilateral imports.
The agreement is expected to provide greater market access for key Indonesian exports, including palm oil derivatives, textiles, footwear, and rubber products, through the elimination of tariffs on eligible goods.
The EU market comprises approximately 450 million consumers and has a combined gross domestic product of around US$22 trillion.
In return, Indonesia is expected to reduce or eliminate tariffs on major EU exports, including wood pulp, aircraft components, railway equipment, and fertilizers.
