Indonesia’s newly appointed Trade Minister, Budi Santoso, has set an ambitious goal to finalize the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) within his first 100 days in office.  

 

Mr. Santoso, who was previously the Trade Ministry's secretary-general, aims to resolve ongoing negotiations, which have dragged on since 2016, with the goal of reaching a fair agreement for both parties. 

 

In his first public statement as Trade Minister, Santoso emphasized that no party should suffer losses under the deal.  

 

"Some [issues] are still pending. If we want to wrap things up, it must be equally beneficial [for both parties], so we are still reviewing [the matter]. Hopefully, there will be a resolution," Santoso said, as reported The Jakarta Post.  

 

He also highlighted that discussions were continuing and expressed optimism that the IEU-CEPA could be concluded before year-end. 

 

The protracted negotiations have faced numerous challenges over the years. After multiple missed deadlines, both Jakarta and Brussels had initially aimed to finalize the agreement before regime changes in both Indonesia and the EU.  

 

One major stumbling block has been the European Union Deforestation Regulation (EUDR), which restricts the import of certain agricultural commodities.  

 

Director General of International Trade Negotiations, Djatmiko Bris Witjaksono, mentioned that Indonesia has been lobbying the EU to allow the entry of its agricultural products, particularly palm oil, which has faced restrictions due to environmental concerns.  

 

"We are still striving to identify a mutually agreeable middle ground on several policy matters," Witjaksono said. 

 

Despite these difficulties, some progress has been made, including agreements on gradual tariff reduction, trade facilitation, and investment. However, key issues such as digital transaction taxes, export duties, and import regulations remain unresolved.  

 

Santoso has stressed the importance of not rushing the process, acknowledging the complexity of the talks. "It is indeed not easy [to reach a consensus]," he said, while reaffirming his commitment to ensuring a beneficial outcome for Indonesia.