Indonesia Set to Exit UK’s DCTS Scheme in 2027, Trade Ministry Intensifies CEPA Push

RRI.CO.ID, Jakarta – Trade between Indonesia and the United Kingdom rose from USD 2.57 billion (IDR 45.61 trillion) in 2021 to USD 2.66 billion in 2025. To further strengthen trade ties, the Ministry of Trade is promoting the establishment of the Indonesia–UK Comprehensive Economic Partnership Agreement (I‑UK CEPA).

Director General of International Trade Negotiations at the Ministry of Trade, Johni Martha, said trade between Indonesia and the UK still has room to grow. He emphasized that a free trade agreement with the UK is an important step toward deepening bilateral trade and economic cooperation.

“There is great potential for Indonesia–UK trade relations to continue growing. We have met with various UK government agencies and stakeholders to boost bilateral trade through the establishment of the I‑UK CEPA,” Johni said in a statement on Wednesday, September 16, 2026.

He made the remarks following a working visit to London from September 7 to 9, during which the Ministry of Trade delegation met with several UK government agencies and stakeholders.

The Ministry of Trade projects that the I‑UK CEPA will enhance competitiveness by expanding market access and strengthening supply chains. The agreement is also expected to reduce regulatory barriers and foster trade in services and investment.

The urgency of strengthening trade cooperation through the I‑UK CEPA has increased because Indonesia will no longer qualify for the UK’s Developing Countries Trading Scheme (DCTS) starting January 1, 2027. Meanwhile, UK exports to Indonesia are currently subject to most‑favored nation (MFN) tariffs of around 6–15 percent.

Johni also led a business forum involving 20 British companies and think tanks on September 8, 2026. The forum served as a platform to gather input from the business community on accelerating the I‑UK CEPA process.

“Input from the business community is crucial for accelerating the establishment of the I‑UK CEPA,” Johni said.

In addition to promoting bilateral trade cooperation, Johni expressed appreciation for the UK’s support for Indonesia’s bid to join the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP).

During the visit, the Ministry of Trade delegation also met with the International Coffee Organization (ICO) in London. Discussions covered issues in the coffee sector, including the welfare of smallholder farmers, recognition of specialty Robusta coffee, regenerative farming practices, and challenges in implementing the European Union Deforestation Regulation (EUDR).

“We emphasized the importance of the ICO’s role in supporting coffee farmers, most of whom are smallholders. At the same time, major coffee‑producing countries must play an active role in creating global regulations that are fairer and more inclusive,” Johni said.

Indonesia has a large market, abundant natural resources, and a competitive manufacturing base. Meanwhile, the UK excels in high‑value products and services, technology, and cross‑sector expertise. Given these characteristics, both countries have strong potential to increase trade and investment.

The Ministry of Trade believes that establishing the Indonesia–UK Comprehensive Economic Partnership Agreement could optimize this potential and increase the value of Indonesia–UK trade in the future. (Misni Parjiati)