IEU-CEPA Agreement Ratified, Coordinating Minister Airlangga Reveals New Opportunities For The Technology Sector

BADUNG - The Government of Indonesia and the European Union have officially signed an agreement to settle the substance of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) on Tuesday, September 23, 2025.

Coordinating Minister for Economic Affairs Airlangga Hartarto, said that this agreement had a real positive impact on Indonesia.

According to him, these benefits include expanding export access, wider market guarantees in the European Union region, as well as liberalizing the trade sector for goods, services, and investment through the IEU-CEPA.

"For goods, both parties have committed to removing tariffs at more than 98 percent of the tariff type and almost 99 percent of the import value," said Airlangga in the Joint Announcement Indonesia IEU-CEPA, Tuesday, September 23.

He said that after the IEU-CEPA came into effect, around 90 percent of Indonesian products would be directly subject to a zero rate in the European Union market, with an additional rate reduction in the following years.

Airlangga estimates that Indonesia's exports will increase significantly for a number of leading commodities such as palm oil, coffee, textiles and garment, fishery products, electronics, kitchen utensils, and forestry products including furniture.

"In addition, the European Union opens opportunities for Indonesia to export high-tech products, including telephone and telecommunications," he said.

In terms of trade facilitation, said Airlangga, Indonesia and the European Union also agreed to strengthen cooperation in simplifying export-import procedures, including strengthening coordination between customs authorities.

In terms of investment, Airlangga noted, the European Union has become one of the five largest foreign investors in Indonesia, with contributions covering various strategic sectors such as chemicals, pharmaceuticals, services, property, processing industry, hospitality, trade and repair, as well as food and beverages.

He said that the IEU-CEPA is believed to strengthen legal certainty for investors, encourage technology transfer, and deepen Indonesia's involvement in the global supply chain, especially for important mineral commodities.

Furthermore, Airlangga emphasized, the IEU-CEPA is a modern and progressive trade agreement, one of which is marked by the presence of a special chapter on digital trade.

According to him, this is an innovative feature that reflects the current direction of global trade, as well as supports regional initiatives such as the ASEAN Digital Economy Framework Agreement (DEFA).

"This positions Indonesia to develop rapidly in the digital economy of the future, both at the regional and global levels," he concluded.