Jakarta (ANTARA) - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) document is set to be signed on September 23 this year. "The IEU CEPA will be inked on September 23. Once the agreement is signed, the process will continue at the parliaments of each party," he told the press after a discussion with the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta on Thursday.
He underlined that European Commissioner for Trade and Economic Security Maroš Šefovi is scheduled to visit Indonesia to sign the agreement document.
However, he noted that the signing would not automatically bring the IEU CEPA into force, as it still requires approval from the parliaments of all 27 European Union member states.
Director General of International Trade Negotiations at the Indonesian Trade Ministry Djatmiko Bris Witjaksono highlighted that the entire administrative and legislative process at the EU might take up to 12 months.
In contrast, he continued, Indonesia is projected to ratify the IEU CEPA in a shorter period, with the House of Representatives (DPR) expected to complete the process between the second and fourth quarter of next year.”
He pointed out that the economic pact could start taking effect in the first quarter of 2027, provided that all procedures run as expected.
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Indonesia and the EU went through rounds of negotiations since 2016 to finalize the agreement. Initiated under former president Joko Widodo’s administration, the completion of talks was announced by President Prabowo Subianto and European Commission President Ursula von der Leyen in Belgium last July.
The IEU CEPA is expected to create new avenues for deeper trade, economic, and investment ties between Indonesia and the EU.
On August 4, Witjaksono underlined that once in force, the agreement would grant zero tariffs for certain Indonesian products exported to EU nations, including textiles and palm oil.
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The IEU CEPA covers market access for goods, with both parties committed to eliminating tariffs on 98 percent of total tariff items and 99 percent of total import value, he noted.
