September 4, 2026 | 06:57 pm
TEMPO.CO, Jakarta - The Coordinating Ministry for the Economy revealed that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) strengthens market access for various Indonesian products.
"This will strengthen market access for various Indonesian products, including palm oil, footwear, coffee, furniture, agricultural and fishery products, and telecommunications equipment," said Edi Prio Pambudi, Deputy for Economic Cooperation and Investment Coordination at the Coordinating Ministry for the Economy, at a press conference in Jakarta on Friday, as quoted by ANTARA.
Edi said the IEU-CEPA is currently in its preparatory phase, following the completion of negotiations in September 2025. The phase is aimed at ensuring the agreement can enter into force in 2027.
According to him, the IEU-CEPA will create significant opportunities for Indonesia and Ireland. Once the agreement enters into force, 90.4 percent of Indonesia’s tariff lines will immediately receive zero tariffs, while another 8.37 percent will benefit from gradual tariff reductions and Tariff Rate Quota (TRQ) facilities.
He added that Ireland’s presidency of the Council of the European Union from July 1 to December 31, 2026, presents an important opportunity to strengthen the economic relationship between Ireland and Indonesia, as well as Indonesia's broader engagement with the European Union.
Edi said the Coordinating Ministry for the Economy aims to measure Indonesia-Ireland economic ties not only by trade value, but also by the quality of investment, innovation, job creation, technology transfer, and opportunities for people in both countries. Indonesia looks forward to working closely with the Irish government, business community, and relevant institutions to ensure their commitments translate into tangible economic benefits for both nations, he added.
Indonesian Minister of Trade Budi Santoso is optimistic that the IEU-CEPA can be signed by the end of October 2026, in line with the Indonesian government's target for the agreement to come into effect in early 2027. He said that the government is continuing to prepare for the completion of the agreement, including by coordinating with the European Union and its member states.
According to him, the previous week the government had met with ambassadors from European Union member states in Jakarta to discuss preparations for implementing the EU-CEPA. The administrative process would take time, given that the EU comprises 27 countries.
On August 22, 2026, the Coordinating Ministry for the Economy stated that the IEU-CEPA text was with the European Union Council. After it is signed, the text will be submitted to the European Parliament for ratification.
The ministry stated that the fastest possible ratification process could take around 90 days, citing the European Union-Mexico agreement as a precedent. The government is optimistic that the IEU-CEPA can begin implementation in early 2027.
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