Indonesia and EU set to finalize trade pact with high-level visits in coming months
Coordinating Minister Airlangga Hartarto said President Prabowo Subianto has ordered the cabinet to speed up the IEU-CEPA, with EU officials slated to visit Indonesia before the end of the year.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed that President Prabowo Subianto has instructed his cabinet to accelerate the conclusion of the Indonesia-EU Comprehensive Partnership Agreement (IEU-CEPA). Plans include a visit by EU Commissioner Maroš to Jakarta and a subsequent trip by the EU President in late October or early November. Legal teams are finalising the English version of the treaty, which will first be examined by the European Parliament before moving to Indonesia’s House of Representatives for ratification.
The target is to finish the domestic process in the latter half of 2026, with full implementation expected by early 2027. Once in force, the pact will grant immediate zero-tariff access to about 90 % of Indonesian goods entering the EU, with the EU eliminating duties on roughly 98.5 % of tariff lines and simplifying customs procedures. Officials say the agreement will boost bilateral investment and enhance Indonesia’s global trade standing.
Why it matters
The deal could dramatically expand market access and investment between Indonesia and the EU, reshaping trade flows for both economies.
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