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Indonesian Firms Not Ready for IEU-CEPA

Survey shows majority of businesses unprepared to leverage trade pact benefits.

New York Editorial News Desk November 3, 2026 1 min read

The Brief

  • 78.9% of firms not ready to use IEU-CEPA facilities.
  • MSMEs face challenges in production and quality.
  • Compliance and financing cited as major barriers.

Shinta Kamdani, chairwoman of the Indonesian Employers Association, stated that the success of the IEU-CEPA should be measured by its impact on exports and investment, not just tariff reductions.

Exporters with international experience are better positioned to benefit from the trade pact, while micro, small, and medium enterprises (MSMEs) face significant challenges in production capacity and quality consistency.

Shinta highlighted that compliance with European standards, financing issues, and access to global supply chains remain major obstacles for businesses.

A 2024 Apindo survey found that 78.9% of respondents were not prepared to utilize the facilities provided by the trade agreement.

She emphasized the need for improved awareness and business capacity to take advantage of the IEU-CEPA opportunities, suggesting partnerships with larger exporters and integration into supply chains as a starting point for MSMEs.

Shinta called for the IEU-CEPA application process to be expedited alongside efforts to enhance industrial competitiveness and address business challenges.

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