Indonesia targets EU trade pact signing in 2026
Economic Affairs Minister Airlangga Hartarto said the agreement is intended to take effect in early 2027 and could support closer business ties with Germany.
Indonesia aims to sign the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in 2026, with implementation intended to start in early 2027, Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Hartarto said the pact would expand access to markets and deepen commercial ties between Indonesia and the EU. He also expressed hope that German businesses and investment would benefit. Germany is an important economic and industrial partner for Indonesia, he said, with bilateral trade reaching around US$6.11 billion in 2025. Over 250 multinationals from Germany operate in Indonesia.
The two countries have maintained economic and investment ties for more than seven decades. German President Frank-Walter Steinmeier visited Indonesia in June 2026, when both sides reaffirmed commitments to cooperation spanning the economy, investment, the energy transition, education and employment.
Hartarto cited the Joint Economic and Investment Committee among the mechanisms supporting bilateral relations. Indonesia sees scope for cooperation with Germany on renewable energy, electricity infrastructure, electric vehicles and batteries, semiconductors, digital infrastructure and sustainable financing. Cooperation on vocational training and skills could also create opportunities for skilled Indonesians to work in Germany, he said.
