Insight

Indonesia–EU Signed CEPA Agreement, Worth the Wait?

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Algo Research Team


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Key Summary:


  • IEU-CEPA agreement, boosting bilateral trade potential
  • Zero tariffs granted for 80% of Indonesian export products
  • Full implementation is targeted in 2027 following ratification

The long-awaited Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) has been signed today on 23rd September 2025, which is expected to boost Indonesia’s export value to the EU by 2.5x.


What’s the matter? Beyond expanding economic cooperation and wider market access, the CEPA agreement is expected to allow up to 80% of Indonesian products to enter the European market with zero tariffs.


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