February 13, 2026
Jakarta. Indonesia is looking to sign the free trade agreement with the European Union or EU by May, according to a minister, as Jakarta wants to penetrate the bloc that accounts for 18% of the world economy as soon as possible.
Last September, both sides finally announced a “substantive conclusion” to the negotiations for an Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA). The talks lasted for almost a decade, with some hiccups in relations over those years. The CEPA deal, which promises massive tariff eliminations, is currently undergoing a “legal scrubbing” process. The text has to go through translation into several European languages as well as Indonesian. Trade Minister Budi Santoso recently told reporters that Jakarta was hoping to have the document ready for signing in the coming months.
“This legal scrubbing process takes time, but there should be nothing left to negotiate,” Budi said as all clauses had been agreed upon.
Asked who would ink the documents, Budi said that such agreements in general usually get signed by the trade minister — in other words, himself. However, Budi signaled that there was still a chance for the signing to happen at a President Prabowo Subianto-European Commissioner Ursula Von der Leyen meeting.
“But it all depends on the leaders. … It actually doesn’t matter [who signs the document]. Hopefully, the EU can speed up the process,” the minister said.
The leaders’ last bilateral talks dated back to July 2025, when Prabowo set foot at the bloc’s Brussels headquarters. They even reached a “political agreement” to fast-track the CEPA talks against the backdrop of US sky-high tariffs hitting the world.
“We are living in turbulent times. When economic uncertainty meets geopolitical volatility, partners like us must come close together,” Von der Leyen said at the time.
Jakarta aims to have the EU CEPA enter into force in early 2027.
Indonesia-EU trade amounted to $30.4 billion throughout 2024, with Jakarta registering a $4.4 billion surplus that year, data showed. They have agreed to eliminate tariffs on over 98% of the tariff lines.
The pact is expected to provide a strong boon for Indonesia’s key exports such as palm oil, textiles, and footwear. While the CEPA is about to mark a new episode in the Indonesia-EU ties, their relations are not free from challenges. Indonesia, the world’s largest palm oil supplier, has been a sharp critic of the EU’s anti-deforestation law, which can be a conundrum for its small farmers.
Throughout 2025, Indonesia has claimed victories against the EU at several World Trade Organization (WTO) disputes related to palm oil, stainless steel, and biodiesel.
This article made by Jayanty Nada Shofa, JakartaGlobe.id
https://jakartaglobe.id/business/indonesia-hopes-to-sign-eu-trade-pact-by-may
