IEU-CEPA Signing Scheduled September 2025

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) agreement was planned to be signed in September 2025.

The IEU-CEPA negotiations have reached a political conclusion. And we are working on completing the preparation of a thorough legal document, which is targeted to be signed in September this year," Airlangga said at a press conference, Thursday, July 31, 2025.

Airlangga also said that he had a discussion with the European Union Commissioner for Trade and Economic Security Maros Sefcovic, and was scheduled to come to Jakarta in September 2025 to attend the signing of the document.

"I have spoken with Commissioner Maros Sefcovic, and he plans to come to Jakarta in September to sign the document," 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, 2025.

Djatmiko added, for the European Union, the IEU-CEPA is also predicted to be able to boost its economic growth by 0.0013 percent.

Selain itu, perjanjian ini juga diproyeksikan meningkatkan kesejahteraan (welfare) sebesar 824,56 juta dolar AS bagi Indonesia dan 481,19 juta dolar AS bagi Uni Eropa.

Selanjutnya meningkatkan investasi diperkirakan akan sebesar 0,42 persen di Indonesia dan 0,0087 persen di Uni Eropa.

Namun demikian, Djatmiko mengingatkan bahwa IEU-CEPA juga berpotensi menimbulkan tekanan terhadap neraca perdagangan yaituIndonesia diperkirakan akan mengalami defisit sebesar 743,31 juta dolar AS, sedangkan Uni Eropa sebesar 288,01 juta dolar AS.

In addition, this agreement is also projected to improve welfare (welfare) by US$824.56 million for Indonesia and US$481.19 million for the European Union.

Furthermore, increasing investment is estimated to be 0.42 percent in Indonesia and 0.0087 percent in the European Union.

However, Djatmiko reminded that 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.