Inp.polri.go.id - Denpasar. Indonesia and the European Union signed the long-awaited Indonesia–EU Comprehensive Economic Partnership Agreement (IEU-CEPA) in Bali on Tuesday (23/9/2025), aiming to expand markets, create jobs, and strengthen small and medium enterprises.

“We target this agreement to take effect on January 1, 2027,” said Coordinating Minister for Economic Affairs Airlangga Hartarto after signing the deal with EU Trade and Economic Security Commissioner Maros Sefcovic, witnessed by 21 European ambassadors, as reported by antaranews.com.

The agreement covers trade in goods, services, and investment. Both sides committed to eliminating tariffs on more than 98 percent of products, accounting for nearly 99 percent of import value. Once implemented, almost 90 percent of Indonesian goods will enter the EU with zero tariffs.

Jakarta expects exports to the EU to rise 2.5 times within five years, with key sectors including palm oil, coffee, textiles, footwear, fisheries, electronics, and furniture. Negotiations began in 2016, making Indonesia the third ASEAN country after Singapore and Vietnam to secure such a pact.

(mg/inp/pr/rs)