September 26, 2025 | 11:30 am
TEMPO.CO, Jakarta - The Ministry of Trade stated that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) can eliminate up to 98 percent of tariff lines in the European Union market.
"Eliminating up to 98 percent of the total tariffs, removing almost all trade barriers for goods and services, and opening the way for investments," said Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, in a written statement on Thursday, September 25, 2025.
He stated that Indonesia and the EU target to implement this agreement by January 2027.
Djatmiko aims for the IEU-CEPA to be signed in 2026 and followed by the ratification process in the parliaments of both parties. He stated that the signing could be achieved after Indonesia and the EU undergo a legal scrubbing process and other domestic procedures.
According to Djatmiko, the benefits of trade cooperation can be felt by Indonesia's key sectors, namely the Indonesian textile and footwear industry. He stated that this agreement will provide certainty for Indonesia's main sectors, namely labor-intensive, industrial, and agricultural sectors, to utilize the market potential in the EU.
In addition to offering benefits to the goods sector, Djatmiko stated that IEU-CEPA provides broad access for Indonesian and European Union service providers. He said that Indonesian service providers can utilize this cooperation to meet the professional labor market needs in the EU, such as legal advisors, architects, IT professionals, midwives, nurses, and engineers.
He also believes that IEU-CEPA will create a conducive investment climate that will drive investment inflows supporting the green economy, especially in the renewable energy sector, electric vehicles, technology-based industries, and research in various fields, including information and communication technology (ICT), electronics, and pharmaceuticals.
The Ministry of Trade reported that Indonesia's total trade with the EU reached US$18 billion from January to July of 2025. This figure increased by 4.34 percent compared to the same period last year, which reached US$30.40 billion.
Indonesia's exports to the EU amounted US$17.4 billion, while its imports from the EU amounted US$13 billion. Therefore, the Ministry of Trade stated that Indonesia had a surplus of US$4.4 billion.
The Ministry of Trade recorded palm oil and its derivatives, copper ore and its concentrates, industrial monocarboxylic fatty acids, footwear with outer soles of rubber, plastic, or leather, and uppers of leather, as well as oilcake and other solid residues, as Indonesia's main exports to the EU.
Meanwhile, Indonesia's main imports from the EU included pharmaceuticals, machinery for making pulp from fibrous cellulosic material, and motor vehicles for transporting goods. They also imported individual machines and equipment with specific functions.
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