TEMPO.CO, Jakarta - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, resumed the talks to expedite the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), in a virtual meeting with EU representatives as part of Airlangga's visit to the United States.
On July 9, 2025, the former Minister of Industry visited Washington DC to discuss import tariffs with U.S. representatives. On the same day, Airlangga also held a virtual meeting with EU Commissioner for Trade and Economic Security Maroš Šefovi to discuss the continuity of the IEU-CEPA agreement.
"The CEPA negotiation process has reached an advanced stage. Currently, Indonesia and the European Union are finalizing technical issues, fine-tuning, and drafting a more detailed timeline to achieve the ratification stage of IEU-CEPA," as stated in the press release by the Coordinating Ministry for Economic Affairs on Thursday, July 10.
Previously, Airlangga mentioned that the agreement would bring several benefits to Indonesia, including the exemption of tariffs for 80% of Indonesian exports to the EU market. The reduction in import duties was obtained after the bilateral economic agreement is ratified.
"After the negotiation takes effect, within 1-2 years, almost 80% of the goods exported from Indonesia will have a 0% import duty," said Airlangga in a virtual press conference on Saturday, June 7, 2025.
Based on the study, the IEU-CEPA implementation is expected to increase exports due to the reduction in tariffs and the removal of non-tariff policies. According to him, Indonesia has the potential to increase our export value by more than 50% in the next 3-4 years.
Center for Strategic and International Studies (CSIS) Economist Dandy Rafitrandi stated that Indonesia needs to expedite the finalization of IEU-CEPA. This step is necessary to open up new market opportunities amidst the 32% tariff imposed by President Donald Trump on Indonesia.
Dandy cautioned that Indonesia should not lag behind other countries that are now starting to lobby the EU, given the talks that have been underway for 9 years.
"Indeed, the FTA (Free Trade Agreement) or CEPA with the European Union is highly relevant. Because Vietnam has had an FTA with the EU since 2020, so we are already 5 years behind. And now Malaysia, Thailand, and the Philippines are competing to resume their negotiations," he said during a Media Briefing on Thursday.
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