Indonesia fast-tracks I-EU CEPA to start in Q4 2026
Indonesia’s trade minister said the government is racing to ratify the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) so the deal can start by the fourth quarter of 2026.
Source: Ministry of Trade Indonesia · August 21, 2026 at 11:49 PM · AI-assisted report
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JAKARTA, 22 AUGUST 2026 —
Indonesia’s trade minister said the government is racing to ratify the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) so the deal can start by the fourth quarter of 2026.
Market Impact
Trade Minister Budi Santoso told a Jakarta implementation dialogue on 21 August that ministries are coordinating to finish ratification documents, align domestic rules and ensure technical readiness. The coordination is led by Coordinating Minister for Economic Affairs Airlangga Hartarto and attended by ambassadors from EU member states.
“We are working across ministries to finalise the legal drafting and technical aspects so we can implement I-EU CEPA as soon as it is signed,” Budi said. He confirmed a target to sign the pact in October 2026.
The pact removes tariffs on 98% of tariff lines, covering 99.5% of two-way trade value versus the prior regime. Palm oil and derivatives, textiles, footwear and rubber products will enter the EU duty-free immediately, while pulp, aircraft, rail equipment and fertiliser will receive the same treatment from Brussels.
Indonesia’s average tariff offer is the deepest it has ever committed, giving domestic exporters a bigger price advantage in the 450 million-consumer EU market with combined gross domestic product of about USD22 trillion, Budi said.
The deal also liberalises services trade, promises stronger investment protections and streamlines customs through digitalisation, faster clearance and upgraded sanitary and phytosanitary cooperation. It adds chapters on state-owned enterprises and sustainability that were absent in earlier accords.
Airlangga said both sides aim to sign in October, then ratify in their respective parliaments before moving to implementation. EU Ambassador to Indonesia and Brunei Denis Chaibi called the dialogue a chance for member states to speed ratification and deepen technical coordination.
Budi warned that post-agreement EU rules such as the Deforestation Regulation, Carbon Border Adjustment Mechanism and fisheries requirements could curb gains if left unaddressed, but said both sides would address such barriers through joint committees.
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