Jakarta (ANTARA) - Coordinating Ministry for Economic Affairs has projected that the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will boost the country's exports to the EU by more than 50 percent.
The ministry's secretary, Susiwijono Moegiarso, said in a statement on Wednesday that once the pact takes effect, it will have a significant impact, noting the minister has guaranteed that exports to Europe could rise by more than 50 percent.
He said the agreement will remove duties on 98 percent of Indonesian products entering EU markets, including clothing and apparel that currently face tariffs of between 7 and 15 percent.
The duty-free access is also expected to benefit agricultural commodities such as bananas, which have long been subject to EU levies of up to 16 percent.
Indonesia and the EU concluded 10 years of negotiations last July, as announced by President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
Trade Minister Budi Santoso earlier said Indonesia aims to ratify the agreement in January next year, marking a decisive step toward its implementation.
The ministry previously described the pact as a key instrument to help Indonesia reach its target of 8 percent economic growth by 2029.
Ferry Irawan, the ministry's deputy for coordination of state-owned enterprise management and development, said the agreement will open wider EU market access for Indonesian products and provide benefits, including tariff reductions for most exports.
Under the pact, several Indonesian commodities will receive zero-tariff treatment, including palm oil, coffee, cocoa, rubber, fishery products, timber and processed wood, textiles, and electronics.
Irawan added that the agreement is also expected to raise the national economic value and ease visa procedures.
