[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

7 clusters · 27 sources · 46 days · First seen · Last updated

Indonesia-EU trade agreement negotiations

Overview

The Indonesian government is accelerating preparations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). President Prabowo Subianto has directed the cabinet to expedite the process to expand Indonesian access to European markets and strengthen bilateral trade and investment.

As of October 2026, the agreement is in its final administrative stages. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that legal teams are finalizing the English-language text for submission to the European Parliament. While Indonesia aims to sign the agreement by the end of October 2026, Trade Minister Budi Santoso noted that hurdles remain on the European Union side regarding official language requirements. Discussions are ongoing to determine if Indonesian and English will suffice or if translations into all EU languages are necessary.

The government is targeting a January 2027 implementation date to mitigate the impact of the expiration of the EU’s Generalised Scheme of Preferences (GSP) at the end of 2026. The pact 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, including those by European Commission President Ursula von der Leyen and EU Trade Commissioner Maroš Šefčovič, are expected in late October or early November 2026 to support these final stages.

Entities

European Union · Indonesia · Budi Santoso · Airlangga Hartarto · Indonesia-European Union Comprehensive Economic Partnership Agreement

Timeline

  1. [BUSINESS] 2 sources
    Indonesia targets October ratification for I-EU CEPA trade deal

    Indonesia aims to submit the I-EU CEPA for ratification by October, targeting a January 2027 implementation to secure zero-percent tariffs for exporters despite ongoing language negotiations with the EU.

  2. [BUSINESS] 11 sources
    Indonesia accelerates IEU-CEPA trade pact finalization

    President Prabowo Subianto has ordered the expedited finalization of the IEU-CEPA trade pact, which aims to grant zero-tariff access to 90 percent of Indonesian goods in the EU by early 2027.

  3. [BUSINESS] 2 sources
    European businesses push for EU-ASEAN regional free trade agreement

    European businesses are pushing for an EU-ASEAN regional free trade agreement, while the IEU-CEPA is seen as a major opportunity for Indonesia to become a manufacturing hub and attract foreign investment.

  4. [BUSINESS] 3 sources
    Kadin Indonesia promotes IEU-CEPA to expand Swedish investment

    Kadin Indonesia aims to boost trade and investment with Sweden via the IEU-CEPA, which could eliminate 98.5% of Indonesian tariffs on EU goods.

  5. [BUSINESS] 2 sources
    Indonesia targets IEU-CEPA signing by October 2026

    Indonesia targets an October 2026 signing of the IEU-CEPA to boost exports by 2027, though palm oil producers warn that EU deforestation regulations (EUDR) remain a significant non-tariff hurdle.

  6. [BUSINESS] 6 sources
    Indonesia prepares I-EU CEPA to boost exports to Europe

    Indonesia is preparing to implement the I-EU CEPA, a trade agreement aiming to reduce tariffs to 0% for most goods, boosting exports like palm oil and textiles to the European market by early 2027.

  7. [BUSINESS] 6 sources
    Indonesia targets October 2026 signing for IEU-CEPA trade deal

    Indonesia aims to sign the IEU-CEPA trade agreement by October 2026, targeting immediate 0% tariffs on 90.4% of goods and boosting EU investment in renewable energy and electric vehicles.

Sources

alltopstartups.com · antaranews.com · asiapundits.com · beautynury.com · bisnis.liputan6.com · cambodianewsagency.com · clovermedia.jp · cn.dailyeconomic.com · cnbcindonesia.com · dailydigest.ie · disway.id · economy.okezone.com · ekbis.sindonews.com · en.antaranews.com · en.tempo.co · europesays.com · fortune.com · industry.co.id · infosawit.com · katadata.co.id · kemendag.go.id · majalahindonesia.id · okezone.com · pendidikan.harianjogja.com · rri.co.id · theeuropetoday.com · visegradinsight.eu

This summary has been updated 6 times: see revision history