Politics
Jokowi pushes for early conclusion of IEU-CEPA to boost economic growth | Entrance hall
President Joko Jokowi Widodo asked his ministers to accelerate the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) before the head of state transition in October of this year.
The aim is to finalize the agreement during the 19th meeting between Indonesia and the European Union, scheduled for Jakarta in early July 2024.
Trade Minister Zulkifli Hasan reported significant progress, stating that IEU-CEPA is already 90 percent complete.
“This has been in the works for eight years, as directed by the president. We hope to finalize it between July 1 and 5,” said Zulkifli in Jakarta, Tuesday, June 25, 2024.
The IEU-CEPA aims to strengthen trade relations between Indonesia and the European Union. Vincent Piket, EU Ambassador to Indonesia and Brunei Darussalam, noted that the agreement could increase Indonesia's GDP by €4.6 billion to €5.2 billion by 2032.
Zulkifli highlighted some of the EU's demands, including the removal of import duties on dairy products and cheese exported to Indonesia. Conversely, Indonesia has proposed tariff exemptions for several products, such as crude palm oil (CPO), textiles, and iron and steel.
“We are ready to accept their products if they reciprocate,” Zulkifli said.
Negotiations on the IEU-CEPA, launched on July 18, 2016, went through 18 rounds, conducted in person and virtually. The 17th round of negotiations took place in Bandung from February 26 to March 1, 2024, focusing on intellectual property rights.
The most recent, the 18th round of negotiations, was held from 13 to 17 May 2024 in Brussels, Belgium, under the auspices of the EU. The Indonesian government remains optimistic about the finalisation of the agreement and its potential to strengthen bilateral trade relations and economic growth.
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