Indonesia targets IEU-CEPA signing by October 2026

The Indonesian government aims to sign the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by the end of October 2026, with the goal of having it effective by January 2027. Trade Minister Budi Santoso stated that administrative documents and ratification drafts are prepared, pending the readiness of the 27 European Union member states. The agreement is expected to potentially double national export values.

Industry leaders, including the Indonesian Palm Oil Association (Gapki), anticipate that the IEU-CEPA will eliminate significant tariff barriers. Specifically, starting in 2027, there is a provision for zero-tariff access for crude palm oil exports with a quota of up to 1 million tons.

However, industry experts warn that non-tariff barriers remain a challenge, particularly the European Union Deforestation Regulation (EUDR). While the trade agreement addresses tariffs, compliance with EUDR regarding forest degradation and geolocation requirements for smallholder farmers remains a critical factor for continued market access.