Country Graduation from the Developing Countries Trading Scheme: Indonesia
Published 19 January 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/country-graduation-from-the-developing-countries-trading-scheme-indonesia/country-graduation-from-the-developing-countries-trading-scheme-indonesia
Summary
As of 1 January 2027, the Republic of Indonesia will graduate (leave) from the UK’s Developing Countries Trading Scheme (DCTS) following its classification by the World Bank as an Upper Middle-Income Country (UMIC) in 2022, 2023, and 2024.
Who should read this notice
You should read this notice if you are a:
- business based in the UK and import goods from Indonesia
- business based in Indonesia and export goods to the UK
- business based in the UK or Asia and benefit from intra-regional cumulation with Indonesia
Understand why Indonesia is graduating
The DCTS is designed to support trade with Least Developed Countries and Low and Lower-Middle Income Countries, as classified by the United Nations and the World Bank. In line with the Scheme’s eligibility criteria and the UK’s obligations under WTO rules, if a country receives UMIC status for 3 years in a row, it no longer gets DCTS preferences.
As Indonesia has met this threshold on 1 July 2025, having been classified as a UMIC since 2022 by the World Bank for its third consecutive year, Indonesia will graduate from the Scheme and will no longer be included in the Asia regional cumulation group.
Transition period
To support a smooth transition for businesses in both the UK and Indonesia, the UK Government will apply an 18-month adjustment period. During this time, Indonesia will continue to benefit from access to DCTS preferences. From 1 January 2027, Indonesia will trade under the UK Global Tariff.
Threshold for graduation met: 1 July 2025
End of DCTS eligibility: 31 December 2026
Effective date of graduation: 1 January 2027
Legislation
The UK Government will update relevant legislation to reflect Indonesia’s graduation from the DCTS, effective from 1 January 2027.