A proposal for a Council decision on the signing of the Comprehensive Economic Partnership Agreement between the European Union and Indonesia, published on 29 June 2026, includes detailed tariff elimination schedules and tariff rate quotas (TRQs) for originating goods. The annex sets out staging categories for duty elimination over periods ranging from immediate (category A) to 15 years (category D), with some products excluded entirely (category X). Specific categories for Indonesia include gradual reductions with partial liberalisation. The document also outlines import licence procedures, TRQ management on a first-come-first-served basis, and rounding rules for duties.
The proposal, which requires Council adoption before signature, establishes the legal framework for liberalising bilateral trade in goods. For the EU, duty-free TRQs are proposed for several agricultural and fishery products from Indonesia, including garlic (150 metric tonnes per year), sweet corn (400 MT), mushrooms (150 MT), manioc starch (2,000 MT), sardines (150 MT), tuna (800 MT), tuna loins (5,000 MT), surimi (500 MT), and high-sugar products (8,000 MT). Indonesia would apply a 5% in-quota duty on wine (1,985 MT per year) and spirits (400 MT in year 0).
Policy orientations and trade-offs The agreement balances market access with protection for sensitive sectors. EU producers of garlic, sweet corn, and fishery products face increased competition from Indonesian imports, but the TRQ volumes are relatively modest, limiting the immediate impact. EU exporters of wine and spirits gain preferential access to the Indonesian market, though the quotas are small relative to total trade. The long staging periods (up to 15 years) allow domestic industries time to adjust.
Impact on stakeholders - EU agricultural and fishery producers: face limited new competition from Indonesian imports under TRQs, with volumes capped at levels unlikely to disrupt domestic markets. - EU wine and spirits exporters: benefit from a 5% preferential tariff within quota, improving price competitiveness against other suppliers. - Indonesian exporters of agricultural and fishery products: gain duty-free access to the EU market within TRQ limits, enhancing export opportunities. - EU consumers: may see slightly lower prices for products like tuna and sweet corn, but the impact is marginal due to small quota volumes.
Institutional follow-up The proposal must be adopted by the Council before the agreement can be signed. The European Parliament will then need to give its consent before the agreement can be concluded. The annex will enter into force upon the agreement's entry into force, with tariff reductions applied according to the specified staging categories.