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Indonesia targets October 2026 signing for IEU-CEPA trade deal
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has announced a target to sign the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by October 2026. The English version of the final document is currently being finalized.
Upon implementation, the agreement is expected to significantly reduce trade barriers, with 90.4% of tariff lines immediately dropping to 0% and an additional 8.37% being reduced gradually. This is intended to boost Indonesian exports in sectors such as palm oil, footwear, coffee, furniture, agriculture, fisheries, and telecommunications.
To expedite the process, the Indonesian government intends to use a Presidential Regulation (Perpres) mechanism for ratification, following consultations with the House of Representatives (DPR). This strategy aims to ensure a seamless transition when Indonesia's Generalized System of Preference (GSP) status expires at the end of 2026.
The agreement also seeks to drive European investment into high-value sectors in Indonesia, including renewable energy, the digital industry, electric vehicle (EV) manufacturing, and pharmaceuticals. Bilateral trade between Indonesia and the EU reached US$31.9 billion in 2025.
Entities
Airlangga Hartarto · Budi Santoso · European Union · Indonesia · Indonesian Employers' Association
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Indonesia plans to use a Presidential Regulation (Perpres) mechanism to expedite ratification. www.cnbcindonesia.com · katadata.co.id
- [● 2 SOURCES] Under the agreement, 90.4% of tariff lines will immediately drop to 0%. www.cnbcindonesia.com · katadata.co.id
- [○ 1 SOURCE] Ratification is necessary to prevent a trade gap when Indonesia's Generalized System of Preference (GSP) expires at the end of 2026. katadata.co.id
- [○ 1 SOURCE] The agreement aims to attract EU investment in renewable energy, digital industries, and electric vehicles.
- [● 3 SOURCES] The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is targeted for signing in October 2026. www.cnbcindonesia.com · katadata.co.id
- [○ 1 SOURCE] An additional 8.37% of tariff lines will be reduced gradually. www.cnbcindonesia.com