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IEU-CEPA to unlock new growth avenue for Indonesia's textile industry

23 Dec '25
5 min read
 IEU-CEPA to unlock new growth avenue for Indonesia's textile industry
Pic: Shutterstock

Insights

  • Indonesia expects exports to the EU to surge over **0** per cent under IEU-CEPA, with zero tariffs on **9**8 per cent of goods, reshaping competitiveness.
  • Textiles and apparel, as per reports, gain most as duties of **7**–**1**5 per cent drop to zero.
  • The pact supports Indonesia's **8** per cent growth goal, while pushing firms to meet EU sustainability rules for long-term market access.

Indonesia is placing a bold and calculated bet on the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), seeing it not merely as another trade pact but as a gateway to one of the world’s most prized consumer markets.

At the centre of this strategy lies a sector that has long powered the country’s industrial engine: textiles and apparel. With the agreement poised to take effect, Jakarta believes it is standing on the edge of an export surge that could reshape its economic trajectory and redefine its position in global manufacturing.

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