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View all search resultsIndonesia races to seal EU trade deal as tariff incentive expires
The EU has confirmed that Indonesia will leave the GSP from Jan. 1, 2027, after being classified as an upper-middle-income country for three consecutive years.
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President Prabowo Subianto instructed his cabinet on Sept. 22, 2026, to expedite the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) at the Presidential Palace. (GCA/- )
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resident Prabowo Subianto has ordered his cabinet to fast-track the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) as negotiators race to finalize the deal before Indonesia loses its preferential tariff access to the EU market when the Generalized Scheme of Preferences (GSP) expires at the end of the year.
“The President wants the Indonesia-EU CEPA to be completed as soon as possible,” Coordinating Economy Minister Airlangga Hartarto said after a meeting at the Presidential Palace complex in Central Jakarta on Tuesday.
The order came as negotiators finalize the English text for submission to the European Parliament, after which Indonesia will prepare the Indonesian version for ratification by the House of Representatives. The government has asked the EU to process the deal in English instead of its usual three-language format to speed up the process.
“Indeed, EU agreements are normally made in three languages, English, French and German. But specifically for Indonesia, we have asked that it be processed in English,” Airlangga said, separately, at the Antara Business Forum on Wednesday.
The agreement must still go through the EU's internal procedures, including signature and European Parliament consent, while Indonesia must complete its own ratification process before the pact can enter into force. The European Parliament currently lists the agreement as being in its preparatory phase.
Read also: Stable rules key to luring investment, outgoing EU envoy says
Airlangga said the government was seeking to accelerate the process because Indonesia's preferential access under the EU's GSP, which removes import duties from products coming from developing countries, is set to end on Jan. 1, 2027.
