Indonesia seeks faster EU trade pact signing before GSP access ends

Indonesia wants the European Union to speed up signing a comprehensive trade agreement before Indonesian goods lose coverage under the EU’s Generalized Scheme of Preferences (GSP) in 2027, Trade Minister Budi Santoso said.

In bilateral talks with Nicolas Forissier, France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Budi sought French backing for the pact’s progress through the Council of the European Union.

Budi said Indonesia was also advancing its domestic procedures, aiming to implement the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) by early 2027. He said quicker implementation was needed to avoid disruption as GSP coverage ends.

Indonesia is seeking meaningful access to the EU market for sustainable palm oil and products derived from it, as well as footwear, textiles and fishery products, according to Budi.

Forissier said French businesses were keen to use the trade preferences and expressed hope for greater investment flows in both directions. He also conveyed concerns from French business groups about Indonesia’s forthcoming mandatory halal certification requirements, saying companies needed sufficient time to comply.

Budi said Indonesian authorities were reviewing possible changes to the implementation timetable. He described halal certification as a consumer-protection measure, rather than a restriction on imports or trade.