Indonesia prepares I-EU CEPA to boost exports to Europe

The Indonesian government is accelerating preparations for the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA). This trade agreement aims to liberalize tariffs, with approximately 90% to 98% of tariff lines expected to be reduced to 0% gradually.

For Indonesia, the agreement is expected to open significant market access for key exports such as palm oil, textiles, footwear, furniture, and food products. The government is currently coordinating across ministries to finalize legal documents, domestic regulatory alignment, and technical implementation details.

Following nearly a decade of negotiations, officials target the signing of the agreement by late September or October 2026, with full implementation aimed for early 2027. The partnership also seeks to foster new investments in clean energy, technology, and industrial sectors while strengthening sustainable economic ties.