The European Commission has shared with the Council and the European Parliament a draft Delegated Act proposing to remove Indonesia from the list of GSP beneficiary countries as of 1 January 2027, the same date on which the EU-Indonesia FTA is expected to enter into force if the ratification process proceeds as planned.

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More details :

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On 29th September, the European Commission formally transmitted to the Council and the European Parliament a draft Delegated Act proposing to remove Indonesia from the list of GSP beneficiary countries (document attached).

Under Article 4(1)(a) of the GSP Regulation, a country ceases to qualify for GSP preferences once it has been classified by the World Bank as a high-income or an upper-middle income economy for three consecutive years. Indonesia has held upper-middle income status in 2023, 2024 and 2025. Consequently, Indonesia is scheduled to exit the GSP scheme as of 1 January 2027.

Member States and the European Parliament now have two months to scrutinise the Delegated Act (with the possibility of a two-month extension). If no objection is raised during this period, the act will be published in the Official Journal of the EU and enter into force.

Once Indonesia is formally removed from the GSP list, its exports to the EU would in principle face MFN duties. However, with the recent conclusion of EU-Indonesia FTA negotiations, the shared objective is to finalise ratification during 2026, so that the agreement can enter into force on 1 January 2027. This would ensure a seamless transition between the two regimes.

Supporting a swift ratification of the EU-Indonesia FTA is a core priority for FESI. At the same time, we are exploring whether limited flexibility could be considered on the GSP side to mitigate the risk of delays in the ratification process.

This matter will be discussed in detail during our upcoming Trade Committee meeting on Tuesday, 3 November in Brussels.

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