IEU-CEPA Targeted Effective 1 January 2027

Coordinating Minister for Economic Affairs Airlangga Hartarto during the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) agreement in Badung, Bali. (Photo: Aris Nurjani/VOI)

The Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) agreement would open a new chapter in bilateral relations between Indonesia and European Union countries.

He added that the government is targeting that this agreement can be implemented effectively in early 2027.

"We are targeting the IEU-CEPA to take effect on January 1, 2027," he said at the IEU-CEPA Indonesian Joint Announcement, Tuesday, September 23.

In the future, Airlangga said, Indonesia and the European Union will enter the legal stage of scrubbing, translation, and ratification.

He hopes that this agreement will immediately provide concrete benefits, especially in encouraging leading industrial sectors in Indonesia including the textile, footwear, finished clothing, furniture, and various other labor-intensive industries that currently absorb around 5 million workers.

"Between now until the enactment of the agreement, we will focus on tangible results, especially for labor-intensive industries such as textiles, footwear, finished clothing, and sector furniture that currently employs around 5 million workers in Indonesia. Now, they have new hope because their export market is wider open to Europe," he said.

In addition, Airlangga also hopes to strengthen the supply chain with the European Union, especially for sectors such as critical minerals, renewable energy, innovation, and investment.

Similarly, European Union Commissioner for Trade and Economic Security Maros Sefcovic is optimistic that this deal will drive greater investment flows in the future, strengthen supply chains, and create new opportunities for innovation and mutual growth.

"No less important, this agreement includes a comprehensive digital trade facilitation package, in line with increasingly important digital roles in global trade," he said.

In addition, he conveyed that the IEU-CEPA also supports the diversification of supply chains, especially in terms of critical raw materials which are now very vital, in which Indonesia acts as one of the main players at the global level.

Overall, Maros called the IEU-CEPA a balanced and visionary agreement, out of respect for the priorities of each party and reflecting common interests.

He emphasized that this agreement succeeded in achieving a balance between ambition and justice, thus providing economic, strategic, and sustainable benefits for both parties.

"This is how the European Union builds relations through true partnerships, open dialogues, and commitments for mutually beneficial results," he stressed.

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He believes that once ratified and enforced, the IEU-CEPA will be a strong foundation for strengthening business relations, deepening inter-community ties, and pushing for joint solutions to global challenges.

"Let us together build an open future, full of partnerships, and mutual welfare. A future where Indonesia and the European Union grow side by side as partners who trust each other on the global stage," he concluded.