Indonesia aims to sign the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by the end of this year, with implementation beginning in early 2027, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. The agreement is intended to enhance market access and trade engagement between Indonesia and the EU, with a focus on bolstering German business interests and investment.
Key Details of the Agreement
Hartarto emphasized that IEU-CEPA serves as a critical tool for expanding trade and fostering business collaboration between Indonesia and the EU, including Germany. The deal is part of broader efforts to strengthen economic ties, which have existed for over seven decades. In 2026, high-level diplomatic exchanges, including German President Frank-Walter Steinmeier’s state visit to Indonesia in June, reinforced commitments to deepen cooperation in areas such as energy transition, education, and employment.
Areas of Cooperation
Indonesia and Germany are exploring collaboration in renewable energy, electric vehicle ecosystems, semiconductors, and digital infrastructure. The countries also aim to enhance vocational education and skills development, potentially creating pathways for Indonesian workers to access opportunities in Germany. Hartarto noted that bilateral trade reached $6.11 billion in 2025, with over 250 German multinational companies operating in Indonesia.
Did You Know? Indonesia and Germany have maintained economic and investment ties for over 70 years, with 2026 marking a year of heightened high-level diplomatic engagement, including a state visit by German President Frank-Walter Steinmeier.
Frequently Asked Questions
When is the IEU-CEPA expected to be signed and implemented?
The agreement is targeted for signing this year, with implementation set to begin in early 2027, according to Airlangga Hartarto.
What was the value of Indonesia-Germany bilateral trade in 2025?
Bilateral trade between Indonesia and Germany reached approximately US$6.11 billion in 2025, as reported by Hartarto.
How many German multinational companies operate in Indonesia?
More than 250 German multinational companies are currently operating in Indonesia, according to the source material.
What long-term economic shifts might influence the success of the IEU-CEPA in the coming years?
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