October 8, 2025 | 11:07 am
TEMPO.CO, Jakarta - The Ministry of Investment announced that several European countries have started exploring cooperation with Indonesia since the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was signed.
"There have been explorations. Several European countries, including EU member states and non-EU countries like Switzerland, have started to approach us," said Nurul Ichwan, the Deputy for Investment Promotion at the Investment Coordinating Board (BKPM), after the CCS Forum event in South Jakarta on Tuesday, October 7, 2025.
Ichwan stated that some provisions in the IEU-CEPA apply to all EU member states. However, he added that there are also articles that require bilateral agreements between Indonesia and specific countries.
According to Ichwan, the explorations concern not only trading goods, but also potential investment cooperation. For example, there are investment protection agreements that can be negotiated directly between the Indonesian government and partner countries.
He added that the targeted sectors have not yet been officially disclosed. However, the food and beverage (F&B) sector and the new renewable energy (EBT) sector are likely to be of interest to European investors.
The Ministry of Trade stated that the IEU-CEPA will have a significant impact on the Indonesian economy. Djatmiko Bris Witjaksono, the Director General of International Trade Negotiations at the Ministry of Trade, said that the agreement will eliminate up to 98 percent of tariffs in the EU market and remove various barriers to trade in goods and services.
In a written statement on Thursday, September 25, 2025, Djatmiko said, "This agreement paves the way for investment, eliminates almost all trade barriers, and will provide certainty for labor-intensive sectors in Indonesia."
He explained that the IEU-CEPA is expected to be signed in 2026 and implemented in January 2027, following the legal review process and ratification by the parliaments of both parties. According to Djatmiko, this cooperation will provide significant benefits to the textile, footwear, industrial, and agricultural sectors. It will also expand opportunities for Indonesian professionals such as architects, nurses, engineers, and IT personnel to work in Europe.
He stated that the IEU-CEPA will also foster a favorable investment climate for green economic sectors, including renewable energy, electric vehicles, and technology-based industries and research, such as ICT, electronics, and pharmaceuticals.
From January to July of 2025, the Ministry of Trade recorded that the total value of Indonesia-EU trade reached US$18 billion, which is a 4.34 percent increase compared to the same period last year. Indonesia's exports to the EU amounted to US$17.4 billion, while imports from the EU totaled US$13 billion. This resulted in a US$4.4 billion trade surplus for Indonesia.
Indonesia's main exports to the EU include palm oil and its derivatives, copper ore, industrial fatty acids, leather footwear, and oil cake. The largest imported products from the EU were pharmaceuticals, industrial machinery, motor vehicles, and mechanical equipment.
Alfitria Nefi Pratiwi contributed to the writing of this article
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