Indonesia accelerates IEU-CEPA trade pact finalization

Indonesian President Prabowo Subianto has instructed his cabinet to expedite the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the agreement is in its final administrative stages, with legal teams currently finalizing the English text for submission to the European Parliament.

Following the EU legislative review, the pact will move to Indonesia's House of Representatives (DPR) for domestic ratification. Indonesia aims to complete the ratification process in the second half of 2026, with full implementation targeted for early 2027. The agreement is expected to provide immediate zero-tariff access to 90 percent of Indonesian goods entering the EU, while the EU is projected to eliminate duties on 98.5 percent of tariff lines.

High-level diplomatic visits are expected to support these final stages. European Commission President Ursula von der Leyen and EU Trade Commissioner Maroš Šefčovič are scheduled to visit Indonesia in late October or early November 2026.