On 29 June 2026, the Council of the European Union published a proposal for a Council Decision on the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, including two annexed protocols: one on mutual administrative assistance in customs matters and another on sustainable palm oil trade. The protocols aim to strengthen customs cooperation and promote sustainable palm oil trade between the parties.
The customs protocol (Articles 1-17) establishes rules for mutual assistance in preventing, investigating, and combatting customs law violations. It covers assistance on request (Article 3) and spontaneous assistance (Article 4), with requests to be made in writing or orally in urgent cases (Article 5). The requested authority must supply existing information or carry out enquiries (Article 6). Authorised officials may be present in the other party's territory in an advisory capacity (Article 8). Assistance may be refused on grounds of sovereignty, public policy, security, or industrial secrets (Article 11). Information exchanged is confidential and subject to data protection laws (Article 12). Implementation is entrusted to Indonesian customs authorities and the European Commission or Member States' customs authorities (Article 15). The protocol overrides incompatible bilateral agreements between a Member State and Indonesia (Article 16).
The palm oil protocol (Articles 1-3) aims to enhance trade in sustainable palm oil, facilitate compliance with sustainability requirements, and foster cooperation. Parties shall increase mutual understanding of their respective sustainability assurance schemes, including the Indonesian Sustainable Palm Oil (ISPO) scheme (Article 3).
No prior coverage of this file exists in the last 180 days. The proposal now awaits Council adoption before the agreement can be signed and subsequently submitted to the European Parliament for consent.
- EU and Indonesian customs authorities: Will need to implement new procedures for mutual assistance, including handling requests and ensuring confidentiality, with moderate administrative impact. - Palm oil producers and exporters in Indonesia: May benefit from clearer sustainability requirements and potential market access improvements, but must comply with ISPO and EU sustainability standards, creating both opportunities and compliance costs. - EU importers and downstream industries using palm oil: Gain potential supply chain predictability and sustainability assurance, but may face adjustments to new verification procedures. - EU consumers and civil society: Could see increased availability of certified sustainable palm oil, though the protocol's effectiveness depends on implementation and enforcement.
The Council will vote on the proposal; if adopted, the Commission will sign the agreement. The European Parliament will then give its consent before ratification.