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View all search resultsMany industries not ready as IEU-CEPA ratification nears
Many businesses do not expect to take advantage of the free trade agreement immediately, as it may take between six and 18 months before they can penetrate the European Union’s common market.
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One by one: Freight trucks wait for their turn to board ferries on July 25, 2025, at Bulusan Port in Banyuwangi, East Java. (Antara/Budi Candra Setya)
W
eeks ahead of the launch of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), many businesses feel ill-equipped to take advantage of improved access to the European market.
Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani told The Jakarta Post on Friday that the success of the IEU-CEPA should not just be measured in tariff reductions “but in how far its benefits translate into increased exports” and investment.
She said exporters with international market experience were more ready to benefit from the trade pact, but micro, small and medium enterprises (MSMEs) would hit roadblocks in production capacity and quality consistency.
Moreover, challenges lay in compliance with European standards, financing and access to global supply chains, said Shinta.
She pointed to a 2024 business survey by Apindo revealing that 78.9 percent of the respondents were not ready to make use of facilities provided by trade agreements.
“This shows that expanding market access should come together with improving awareness and business capacity to utilize the opportunity. For MSMEs, partnerships with big exporters and integration into industrial supply chains could be a realistic start to expanding their involvement in international trade,” said the business leader.
“Expediting IEU-CEPA application needs to go in tandem with implementation readiness, increased industrial competitiveness and resolving hurdles faced by the business world,” she added.
