Coordinating Minister For Economic Affairs Airlangga: IEU-CEPA Negotiations Enter Final Stage

Coordinating Minister for Economic Affairs Airlangga Hartarto announced that negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will soon enter their final stages after nearly a decade and more than 19 rounds. 

"We've been negotiating the IEU-CEPA for the 10th year, more than 19 rounds, but all issues will be resolved," Airlangga said during a press conference in Brussels, Belgium, Saturday (July 12) local time. 

According to Airlangga, the agreement will be an important milestone amidst the current global uncertainty. "Implementation of the IEU-CEPA will allow Indonesian products to enter the European market with zero percent tariffs," he said. 

Airlangga stated that the signing of the agreement is planned for the third quarter of this year in Jakarta, but the official announcement regarding the implementation date will be made directly by President Prabowo Subianto. 

He stated that all obstacles in the negotiations have been resolved, despite various challenges, including global geopolitical dynamics. 

Indonesia's ongoing membership in the Organisation for Economic Co-operation and Development (OECD) strengthens its status as a strategic partner for the European Union. 

"Indonesia is also a strategic partner for Europe because we are also seen as being in the process of joining the OECD, so we are considered to be starting to become like-minded countries," he said. 

Airlangga added that Indonesia is seen as a country with strong economic growth prospects in the ASEAN region, making it a key partner and pioneer in establishing economic cooperation with various countries. 

"They see ASEAN as very strong in various regions, and Indonesia is the anchor. After Indonesia is behind, they line up. Malaysia wants it, Thailand wants it, so Indonesia is a pioneer in collaborating with various countries," he said. 

On the same occasion, Coordinating Minister Airlangga also emphasized that the IEU-CEPA agreement was implemented in a mutually beneficial scheme that prioritizes the interests of both parties. 

"A trade agreement must be a two-party agreement. So we are looking for a win-win situation," he concluded. 

Airlangga is expected to travel to Brussels, Belgium, to accompany President Prabowo in a series of meetings with European Commission President Ursula von der Leyen, European Council President Antonio Costa, and Belgian King Philippe. 

According to the Coordinating Ministry for Economic Affairs website, trade relations between Indonesia and the European Union continue to show significant growth, with trade volume reaching US$30.1 billion in 2024. 

Indonesia's trade surplus with the European Union also increased rapidly, reaching US$4.5 billion in 2024, up from US$2.5 billion the previous year. 

Tag: Airlangga Hartarto CEPA OECD