February 6, 2026 | 03:23 pm
TEMPO.CO, Jakarta - Indonesia’s Ministry of Trade, in collaboration with national business groups, plans to establish an Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) Business Council as part of preparations for implementing the long-negotiated trade pact.
Trade Minister Budi Santoso said negotiations with the European Union have entered the legal scrubbing stage and are expected to be completed in May.
He said the process takes time because approval is required from all 27 EU member states.
“We understand the EU’s process because it involves 27 countries. Approval must be obtained from each of them,” Budi said at a press conference at the Ministry of Trade in Jakarta on Friday, February 6, 2026.
Once the legal review is completed, the government is targeting the implementation of the agreement in January 2027.
While awaiting completion of the process, the Ministry of Trade will work with the Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Employers’ Association (Apindo) to form the IEU-CEPA Business Council as an early preparation platform.
Budi said the business council is intended to ensure the agreement can be effectively utilized from the outset. It will serve as a business-to-business communication forum, allowing Indonesian and European companies to begin identifying potential trading partners ahead of the agreement’s entry into force.
“This platform will facilitate communication between businesses so they can find suitable partners. We do not want the CEPA to take effect but then be underutilized,” Budi said.
He added that the ministry will continue coordinating with business associations to boost Indonesia’s exports to the European Union.
Previously, the Ministry of Trade said the IEU-CEPA has the potential to eliminate up to 98 percent of tariff lines in the EU market.
Director General of International Trade Negotiations Djatmiko Bris Witjaksono said the agreement would remove nearly all trade barriers for goods and services while opening broader investment opportunities.
“IEU-CEPA eliminates up to 98 percent of total tariffs, removes almost all trade barriers for goods and services, and paves the way for investment,” Djatmiko said in a written statement on Thursday, September 25, 2025.
He said the agreement is expected to benefit key Indonesian sectors, including textiles and footwear, labor-intensive industries, manufacturing, and agriculture.
Beyond goods trade, IEU-CEPA will also expand market access for services, including professional services such as legal advisory, architecture, information technology, healthcare, and engineering.
Djatmiko added that the agreement could improve the investment climate, especially in green sectors like renewable energy and electric vehicles, as well as technology-driven industries such as ICT, electronics, and pharmaceuticals.
Alfitria Nefi contributed to the writing of this article.
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