Airlangga Touts Indonesia-EU CEPA as 'Game Changer' for Economy

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August 22, 2026 | 02:30 pm

Coordinating Minister for Economic Affairs Airlangga Hartarto, accompanied by European Union Ambassador to Indonesia and Brunei Darussalam H.E. Denis Chaibi (far left), Trade Minister Budi Santoso (center), and Ambassador of Ireland H.E. Shaon Lennon (right), attends a meeting with EU ambassadors to Indonesia at the Coordinating Ministry for Economic Affairs' Graha Sawala in Central Jakarta on August 21, 2026. Tempo/Intern/Cristina Siregar.

TEMPO.CO, Jakarta - Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesia-European Union Comprehensive Economic Partnership Agreement (EU-CEPA) could become a game changer for the Indonesian economy.

One of the opportunities the government is targeting is increased investment from European Union countries. Airlangga said the EU-CEPA would expand Indonesia’s market access to Europe, with around 90 percent of Indonesia’s tariff lines set to fall to zero immediately after the agreement takes effect. The remaining tariffs would be reduced gradually.

“This is a game changer for Indonesia,” Airlangga said during a meeting with EU ambassadors to Indonesia at the Coordinating Ministry for Economic Affairs in Central Jakarta on Friday, August 21, 2026.

EU-CEPA Expected to Unlock European Investment

Airlangga said the benefits of the agreement would extend beyond trade, with the government expecting the EU-CEPA to unlock new investment opportunities from Europe.

The European Union, he said, is one of Indonesia’s investment partners across various sectors. Recent visits by business delegations from European countries, Airlangga added, indicate growing interest in tapping into these opportunities.

He said business delegations from Germany and France had recently visited Indonesia.

“Once this agreement is ratified, it will open up or unlock the potential for investment to come into Indonesia,” Airlangga said.

The government is targeting the EU-CEPA to be signed in October. Once signed and ratified by both sides, the government will implement the necessary regulations that have already been prepared.

Renewable Energy, Digital Economy Among Key Sectors

Several sectors are expected to benefit from the cooperation, including renewable energy, the digital economy, cybersecurity, and agriculture.

Airlangga said Europe’s strengths in manufacturing, innovation, and technology could provide opportunities for Indonesia to expand its economic cooperation with European countries.

For Airlangga, economic ties between Indonesia and Europe are not new. Trade relations between the two sides have existed for centuries.

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