The Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is expected to become a key driver for Indonesia’s economic growth, potentially reaching 8% by 2029. According to Kementerian Koordinator Bidang Perekonomian (Kemenko Perekonomian), the agreement will open wider access to the European market, reduce tariffs for the majority of Indonesian exports to Europe, and simplify visa procedures through a fast-track policy.
Under IEU-CEPA, nearly 98.6% of tariff lines for Indonesian goods will be reduced, allowing many commodities — including agricultural products like palm oil, coffee, cocoa, and rubber; fisheries such as fish and shrimp; forestry goods; as well as textiles and electronics — to enter the EU market potentially with zero tariff. To capitalize on this, the government is also strengthening the domestic economy by boosting productivity, promoting green and blue economy initiatives, accelerating industrialization, creative economy, tourism and digital transformation, and maximizing state spending for productivity gains.
