Indonesia, EU Conclude 9-Year IEU-CEPA Talks, Move Toward Final Legal Draft
Main Takeaways
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JAKARTA, Investortrust.id – Indonesia and the European Union have agreed to conclude the substantive negotiations of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), moving the nearly decade-long process into its final legal drafting phase, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
Speaking after a meeting with European Commissioner for Trade and Economic Security Maros Sefcovic in Brussels on Friday, June 6, Airlangga confirmed that both sides had reached consensus on the remaining issues that had stalled the talks for nine years.
“IEU-CEPA has now entered the final stage after nine years of negotiations,” Airlangga said in a statement on Saturday, June 7, adding that this marks a strategic breakthrough in Indonesia’s global trade efforts.
The two parties are now preparing to draft the final legal text, a process that will be followed by formal ratification requiring approval from Indonesia and all 27 EU member states.
Major Milestone in Global Trade Amid Uncertainty
Airlangga emphasized that finalizing IEU-CEPA would send a strong message amid ongoing global economic uncertainty. “This agreement reflects the importance of international cooperation in overcoming global challenges,” he said.
In 2024, total trade between Indonesia and the EU reached $30.1 billion. The EU is Indonesia’s fifth-largest trading partner, while Indonesia ranks 33rd among EU trading partners. Indonesia recorded a trade surplus of $4.5 billion in 2024, up from $2.5 billion in 2023.
Key Areas of Agreement
The IEU-CEPA is expected to deliver wide-ranging benefits:
• Tariff Elimination: Once the agreement takes effect, nearly 80% of Indonesian exports to the EU will face zero tariffs within one to two years.
• Non-Tariff Barrier Reduction: The deal also includes commitments to address non-tariff barriers and harmonize regulatory standards, including sanitary and phytosanitary measures for agricultural goods.
• Sustainable Growth Framework: Both parties agreed on a sustainability framework aligned with the Paris Agreement and on promoting trade and sustainable growth.
• Economic Cooperation: The agreement includes provisions for economic cooperation and capacity building programs.
Indonesia Pushes for Fisheries Preferences
Airlangga also advocated for preferential treatment for Indonesia’s fishery products, arguing that as an archipelagic state with vast marine resources, Indonesia deserves the same market access granted to other EU partners.
“Indonesia is prioritizing market access for our fishery products to enter Europe,” he said.
Next Steps and Presidential Endorsements
Both Airlangga and Commissioner Sefcovic will report the results of the negotiation to their respective leaders—President Prabowo Subianto and European Commission President Ursula von der Leyen.
“There are no remaining major hurdles,” said Airlangga. “We are ready to announce the conclusion of the negotiations by the end of June 2025.”