Indonesia is an active participant in bilateral and multilateral trade negotiations that will directly affect foreign businesses operating in or exporting to Indonesia. Here is the current landscape.
The US and Indonesia reached an Agreement on Reciprocal Trade (ART) in mid-2026, a significant development following the tariff escalations of early 2025. The agreement addresses tariff rates on key Indonesian export categories to the US, commitments from Indonesia on market access for US goods and services, and cooperation on supply chain and digital trade.
For businesses with US-Indonesia trade flows, the ART represents a material change to the cost and competitive dynamics of cross-border operations. The full text and implementing regulations are subject to ratification processes in both countries.
Negotiations for the EU-Indonesia CEPA (often referred to as IEU-CEPA) have been ongoing for several years. The agreement covers trade in goods (including tariff reductions), services market access, investment protection, intellectual property, sustainable development commitments, and technical barriers to trade.
If finalized, EU-CEPA would be particularly significant for:
The timeline for finalization remains uncertain. IndonesiaDesk monitors CEPA developments for clients in affected sectors.
Indonesia has been active in adjusting import licensing requirements for various product categories. Recent changes have affected electronics, industrial machinery, food products, and raw materials for manufacturing. The Ministry of Trade (Ministry of Trade) issues and updates these regulations, which can affect import procedures, required documentation, and lead times.
A structured analysis of how current trade policy developments — including ART, EU-CEPA, or specific import/export regulatory changes — affect your business operations or investment.
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