European Trade Agreement targeted by Early 2027

The government accelerates signing and ratifying treaties with the EU or Indonesia - European Union Comprehensive Economic Partners Agreement (IEU-CEPA) in order to apply in early 2027. Because, the IEU-CEPA is rated an important moment to open a wider trade and investment between Indonesia and the EU (UE).

The spokesperson of the Ministry of Cultural Coordinator Haryo Limanseto says the government continues to push for signing and certification to be accelerated, so this agreement is expected to begin implemented in early 2027 and give real benefits to both the economy.

"It is important to maintain a positive moment of IEU-CEPA completion through reinforcement of coordination and diplomacy with the UE institutions. The signing acceleration also needs to be followed by preparation for certification and implementation in order to get the benefit of both parties," said Haryo in his statement, Tuesday (20 / 10 / 2026).

After reaching substantial completion in September 2025 and completing the legal process of scrubbing in August 2026, Indonesia and UE are now entering the final stage of signing preparations. In June 2026, the European Commission had submitted a proposal regarding the IEU-CEPA to the European Union Council to get the signing agreement and completion.

The Embassy of Ri for Belgium, Luxembourg Annual and the EU are also conveying the development of intensive communications with the use of the UE interests, including the Marohakoto Economics Commissioner and Economics, to encourage the completion of the UE internal procedure.

In addition to IEU-CEPA, Indonesia -Canada CEPA (I-CA CEPA), and Indonesia Based on some of the FTA / CEPA impact analyses, I-CA CEPA potentially increased exports around US $1.6 billion, and I-EAEU FTA around US $2,2- 2,89 billion, IEU-CEPA potentially impacts Indonesian exports to US $10.9 billion. That number shows that trade treaties not only benefit from the depreciation of fares, but also open up a trading expansion space that can be directed at commodities that have a production capacity and potential demand in partner countries.

As far as that goes, the Potential Export Analysis shows that CEPA / FTA utilization can be directed at a number of commodities that have a pretty large gap export. The gap export is obtained from the difference between exports existing (currently) and export values that are potentially still in the partner market.

For EU, EFTA, and UK (UK), there's a major opportunity between the palm coconut commodity and its derivative, motor, coffee, cocoa, rubber and rubber products, iron and steel, oil and fishery. For Canada, export opportunities are mainly in minerals and metals, chemical products, vehicles, wood / rubber, and machines and electronic equipment. Meanwhile, food and water, seafood, footwear, processed, electronic, auto, and craft products become groups that can be driven through the ICA.

In the EAEU region, export opportunities are mainly derived from chemical products, napati products, vehicles, minerals and metals, and wood, paper, rubber and plastic. At the commodity rate, palm coconuts, footwear, shrimp, natural rubber, coffee and atsiri oil include products that get better rates through the I- EAU FTA.

Haryo also said that in the meeting, in addition to the acceleration of the IEU-CEPA, it was a part of the possibility of strengthening Indonesian and UE economic partnership in strategic sectors, including the development of the semiconductor industries, technology and creative economies. That cooperation is expected to open new investment opportunities, improve the national industrial capacity, and encourage the development of ecosystem innovation and technology in Indonesia.

"It takes synergy between the Indonesian government and the RI Representatives in Brussels to escort the IEU-CEPA completion and strengthen economic cooperation with the countries of the UE members who are expected to accelerate the benefits of the agreement and be the foundation for Indonesian and UE economic partnerships which are increasing and sustaining," answered Haryo.

Also see also Video: RI- Union Europe Finally Agreement of IEU-CEPA Trading Agreement · Global Voices