Indonesia targets January 2027 start for EU trade pact
Preferential EU tariffs for Indonesian goods expire on January 1, 2027, with ministers seeking to preserve access through the new agreement.
Indonesia hopes to bring its trade agreement with the European Union into force in January 2027, Trade Minister Budi Santoso said, as an existing preferential tariff arrangement for Indonesian goods ends.
Speaking at the 2026 National Leadership Meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, Santoso said he hoped the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would be signed in November.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the pact was needed to preserve Indonesian goods' access to the EU market. The EU's Generalized System of Preferences (GSP), which gives those products tariff advantages, expires for Indonesia on January 1, 2027.
Hartarto expressed hope for an earlier signing, over the weekend, so the agreement could reach the European Parliament in early November. The two sides are preparing the full documents in English before European Parliament discussions and Indonesia's ratification process.
Santoso said Indonesia had put 25 trade agreements into effect, with another 13 undergoing ratification. He argued that such agreements should be judged not only by trade balances but also by their contribution to domestic industry and export growth.
