On January 1, 2027, Indonesia will lose its preferential access under the EU’s Generalized Scheme of Preferences (GSP), a status it has held since 1995, because it has been classed as an upper-middle-income country for three consecutive years. Without GSP beneficiary country status, many of Indonesia’s exports to the EU would face standard most favored nation (MFN) duties. The planned replacement is the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), whose negotiations concluded in September 2025. The new agreement still needs to be signed and to win the European Parliament’s consent, and Jakarta is targeting entry into force only in “early 2027.” This leaves a risk of a period when GSP has ended but the CEPA is not yet in force.
