Indonesia, EU to ratify key trade deal soon

Negotiations on the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) are nearly 90% complete, with the deal expected to be finalized this month, according to Indonesia’s Trade Minister Zulkifli Hasan.

He made the statement after attending a meeting with Commission VI of the House of Representatives on September 4.

The minister made a similar statement on August 29, saying that negotiations on trade agreements, including IEU-CEPA, must be concluded before the new government led by President-elect Prabowo Subianto comes into office in October. Indonesia's trade balance has posted a surplus for 51 successive months and the country is pushing for further growth by accelerating negotiations on economic cooperation agreements, he noted.

After nine years of negotiations, Indonesia hopes to ratify the IEU-CEPA before major political changes. Once it takes effect, Indonesia can expect to have its products exempted from import duties when entering European markets.

Meanwhile, the Trade Minister's expert for international trade, Bara Krishna Hasibuan, said that the agreement is a good opportunity to boost trade for both Indonesia and the EU.

In addition to making import duty exemption possible, the IEU-CEPA is also expected to help Indonesia and the EU bridge differing views on the EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM), he added.