Indonesian Foreign Minister Sugiono reiterated the importance of the agreement during a bilateral meeting with European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas on the sidelines of the ASEAN Foreign Ministers’ Meeting and Post-Ministerial Conferences (AMM/PMC) in Manila on Thursday (July 23).
“The signing of the IEU-CEPA is highly strategic for strengthening trade, investment, and economic partnership between Indonesia and the EU,” Sugiono said in a statement issued by the Ministry of Foreign Affairs.
The renewed push comes as both sides work toward an ambitious timeline following the conclusion of the substantive negotiations in 2025.
Officials are targeting ratification in the second half of 2026, paving the way for the IEU-CEPA to enter into force in early 2027.
The process entered a key phase earlier this month when the European Commission submitted proposals for the signing and conclusion of both the IEU-CEPA and the accompanying Investment Protection Agreement (IPA) to the Council of the European Union.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the agreements must first secure approval from the Council of the European Union before being submitted to the European Parliament for final consent. Indonesia is also continuing its domestic ratification process in parallel.
Under the IEU-CEPA and IPA, the EU will eliminate import duties on 98.5 percent of tariff lines, simplify export procedures, and create greater investment opportunities in strategic sectors such as electric vehicles, electronics, and pharmaceuticals.
For Indonesia, the agreement is expected to expand export market access across the European Union, improve the competitiveness of domestic products, attract high-quality investment, and strengthen the country’s integration into global value chains.
Energy transition
Beyond trade, the bilateral talks also underscored a shared commitment to advancing the global energy transition. Sugiono highlighted Indonesia’s vast renewable energy potential and called for stronger cooperation with the EU in renewable energy development and sustainable investment.
“Indonesia has great potential in developing renewable energy. Cooperation with the EU is crucial to realizing this potential,” Sugiono said.
Addressing broader regional and global challenges, Sugiono and Kallas also reaffirmed their commitment to strengthening multilateralism, emphasizing that conflicts should be resolved through dialogue and diplomacy to achieve lasting peace.
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Translator: Yashinta Difa
Editor: M Razi Rahman
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