European Union Ambassador Denis Chaibi has emphasized that regulatory stability and lower non-tariff trade barriers are essential to attracting European investment to Indonesia, noting that past regulatory unpredictability deterred investors. As neighboring Southeast Asian nations like Singapore and Vietnam already leverage free trade agreements with the EU, Indonesia must act quickly to secure tariff-free access via the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). Formal signing for the agreement is anticipated in mid-October, aiming for full implementation in early 2027 following legislative ratifications. To fully benefit, domestic producers in sectors like palm oil, textiles, furniture, and halal products are urged to align with EU standards regarding quality, traceability, and sustainability. In response, local business groups—including the Indonesian Young Entrepreneurs Association (HIPMI) and the Employers Association (Apindo)—stressed that the agreement's success should include small and medium enterprises (SMEs) and supply chain players, calling for joint task forces to resolve trade bottlenecks. The Indonesian government, represented by the Office of the Coordinating Minister for Economic Affairs, confirmed the establishment of a dedicated de-bottlenecking team and a single contact point to accelerate regulatory drafting and streamline implementation. Additionally, the government is actively preparing local businesses to comply with upcoming strict regulations, including the EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM). (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 26/08/2026