Analysis of the Indonesia–EFTA Comprehensive Economic Partnership Agreement (IE-CEPA) to Enhance Indonesia’s Export Market Access
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Dwi Fauziansyah Moenardy*
Rizal Budi Santoso
Rizqi Muttaqin
International trade plays a crucial role in Indonesia’s economic growth through exports and imports. However, challenges such as the COVID-19 pandemic, non-tariff measures (NTMs), and protectionist policies hinder Indonesia’s export performance. Agreements like the Indonesia-EFTA Comprehensive Economic Partnership Agreement (IE-CEPA) facilitate market access to EFTA, a region with high purchasing power. This study analyzes the effectiveness of IE-CEPA in enhancing Indonesia’s exports while identifying challenges and optimization strategies. Using a qualitative descriptive-analytical approach, data collection methods include interviews and literature studies. The findings indicate that IE-CEPA eliminates tariffs by nearly 100% for various Indonesian products. Additionally, the agreement reduces non-tariff barriers and provides special schemes for MSMEs. With its extensive trade network, EFTA has the potential to serve as a gateway for Indonesian products into the European market, strengthening competitiveness, exports, and investment. Despite EFTA’s high purchasing power, Indonesia's market share in the region was only 0.29% in 2018. Following the implementation of IE-CEPA, exports to Switzerland, Iceland, and Norway increased, while the trade deficit with Liechtenstein persisted. Products such as jewelry, coffee, and footwear successfully entered the Swiss market, whereas palm oil and motor vehicles have yet to show significant export growth. This agreement plays a strategic role in enhancing Indonesia's global competitiveness.
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