IEU-CEPA Agreement Signed September 23, Coordinating Minister Airlangga: 80 Percent Of Indonesian Products Are Tariff-Free To Europe
The signing of the Indonesia-European Union Comprehensive Economic Partnership (IEU-CEPA) trade agreement document will be signed on September 23, 2025.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the document later signed by the two parties was a complete comprehensive agreement of economic cooperation.
"With the signing of the IEU-CEPA on 23 (September) later, it means that 80 percent of Indonesian products to Europe are 0 percent and vice versa," said Airlangga at the Green Initiative Conference (GIC) at the Hotel Borobudur, Jakarta, Wednesday, September 17.
"We hope that Indonesia's trade with the European Union will increase 2.5 times (fold). Now it's around 30 billion billion (billion US dollars), maybe we hope this can increase to 60 billion in 5 years," he continued.
Airlangga said that currently Indonesia's trade diplomacy in the global arena is strong.
In addition to the completion of the IEU-CEPA negotiations, currently, Indonesia has also won a lawsuit for oil palm disputes at the WTO against the European Union.
"This victory shows our trade diplomacy is strong," he said.
Previously, the government targeted the implementation of the IEU-CEPA to take effect in the fourth quarter of 2026 or no later than the first quarter of 2027.
Based on the results of the cost and benefit study, the implementation of the IEU-CEPA is expected to contribute to Indonesia's economic growth of 0.04 percent.
"With the IEU CEPA, it will increase growth for Indonesia by approximately 0.04 percent," said Director General of International Trade Negotiations of the Ministry of Trade (Kemendag) Djatmiko Bris Witjaksono in the Dissemination of the IEU CEPA Negotiation Results, Friday, June 13.
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Djatmiko menambahkan, bagi Uni Eropa, IEU-CEPA juga diprediksi mampu mendorong pertumbuhan ekonominya sebesar 0,0013 persen.
Perjanjian itu juga diproyeksikan bisa meningkatkan kesejahteraan (welfare) sebesar 824,56 juta dolar AS bagi Indonesia dan 481,19 juta dolar AS bagi Uni Eropa.
Kemudian, akan meningkatkan investasi sebesar 0,42 persen di Indonesia dan 0,0087 persen di Uni Eropa.
Namun demikian, Djatmiko mengingatkan, IEU-CEPA juga berpotensi menimbulkan tekanan terhadap neraca perdagangan, yaitu Indonesia diperkirakan akan mengalami defisit sebesar 743,31 juta dolar AS, sedangkan Uni Eropa sebesar 288,01 juta dolar AS.
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Djatmiko added, for the European Union, the IEU-CEPA is also predicted to be able to boost its economic growth by 0.0013 percent.
The agreement is also projected to improve welfare (welfare) by 824.56 million US dollars for Indonesia and 481.19 million US dollars for the European Union.
Then, it will increase investment by 0.42 percent in Indonesia and 0.0087 percent in the European Union.
However, Djatmiko reminded, the IEU-CEPA also has the potential to cause pressure on the trade balance, namely Indonesia is expected to experience a deficit of 743.31 million US dollars, while the European Union is 288.01 million US dollars.