The Council of the European Union has received a Commission proposal for a Council Decision on signing the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, including Annex 2 (Part 5/5) which sets out tariff elimination schedules for specific goods. The proposal, signed by Director Martine DEPREZ on 29 June 2026, covers tariff lines under HS 2022 chapters 69 (ceramic products), 70 (glass and glassware), 71 (pearls, precious stones, metals, coin), and 72 (iron and steel). Base rates range from 0% to 30%, with staging categories: A (immediate elimination upon entry into force), B5 (elimination over 5 years), D (other staging), and X (exclusion from liberalisation). Examples of excluded items (staging X) include certain flat-rolled iron/steel products (HS 72089020, 72104914, 72104917, 72104999).
The proposal is the latest step in the EU-Indonesia CEPA negotiations, which have been ongoing for several years. The agreement aims to boost bilateral trade and investment by reducing tariffs and non-tariff barriers. This annex details which Indonesian tariffs on EU ceramics, glass, precious metals, and steel products will be eliminated immediately, phased out over five years, or excluded entirely. The Commission's proposal now awaits Council approval before the agreement can be signed and subsequently ratified by the European Parliament and member states.
Policy orientations and trade-offs The tariff schedules reflect a balance between market access for EU exporters and protection for sensitive Indonesian industries. Immediate elimination (category A) benefits EU producers of ceramics, glass, and precious metals, while the five-year phase-out (B5) gives Indonesian industries time to adjust. Exclusions (X) protect domestic steel producers from competition, particularly in flat-rolled products. The agreement thus opens new opportunities for EU exporters while preserving some protection for Indonesian manufacturing.
Impact on stakeholders - EU exporters of ceramics, glass, and precious metals gain immediate or phased tariff-free access to the Indonesian market, reducing costs and improving competitiveness. This is a moderate positive impact for these sectors. - EU steel exporters face continued barriers on certain flat-rolled products, limiting market access. This is a moderate negative impact for those specific product lines. - Indonesian consumers benefit from lower prices on imported EU goods, but domestic steel producers face continued protection, potentially keeping prices higher. The net impact is mixed. - Indonesian customs authorities must implement the new tariff schedules, requiring administrative adjustments. This is a minor operational impact.
Institutional follow-up The Council will now examine the proposal. If adopted, the Council Decision will authorise the signing of the CEPA. The European Parliament will then need to give its consent before the agreement can be ratified and enter into force.