The Council of the European Union has received a proposal from the European Commission for a Council Decision to conclude the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia. The proposal, dated 29 June 2026, includes detailed annexes covering government procurement, state-owned enterprises (SOEs), energy goods, raw materials, and dispute settlement procedures.
The annexes set out market access schedules for government procurement for both parties. Annex 11-A covers EU commitments, while Annex 11-B details Indonesia's commitments, divided into sections for central government, sub-central government, other entities, goods, services, construction services, general notes, and publication media.
Annex 13-A contains specific rules for Indonesia on SOEs. Section C of Chapter 13 (Competition) shall not apply to Indonesia's equitisation, restructuring, or divestment of assets if done without discriminating against Union enterprises. Article 13.17 shall not apply to SOE purchases of goods or services from Indonesian SMEs if made pursuant to Indonesian laws or governmental measures. Section C applies only to 23 listed SOEs as of 23 September 2025 and their successors, including PT Telkom Indonesia, PT Bank Rakyat Indonesia, PT Pertamina, and PT Perusahaan Listrik Negara. Specific exceptions cover activities such as the Jakarta-Bandung high-speed railway, national food stock, coal/mineral sales, sugar self-sufficiency, subsidised oil and gas, electricity distribution, and subsidised fertiliser. Point (a) of Article 13.17(2) shall not apply to commercial activities related to purchases fulfilling a public service mandate. Indonesia may add SOEs to the list, subject to review by the Trade Committee one year after application and at least every three years thereafter.
natural gas including LNG and LPG (HS 27.11), electricity (HS 27.16), crude oil (HS 27.09-27.10), solid fuels (HS 27.01, 27.02, 27.04), biogas (HS 38.25), and biodiesel (HS 38.26). Annex 14-B lists raw materials including salt, sulphur, earths and stone (HS 25), ores, slag and ash (HS 26) excluding uranium and thorium but including monazite, goods in HS 27, inorganic chemicals (HS 28) excluding radioactive elements, organic chemicals (HS 29) excluding specialty pharmaceuticals, fertilizers (HS 31), graphite, nickel-based catalytic preparations, natural rubber (HS 40), raw hides and leather (HS 41), wood pulp (HS 47), and basic/precious metals and processed minerals.
Annex 22-A sets rules of procedure for dispute settlement panels, including notification requirements, appointment of panellists by lot, expenses based on WTO standards, written submission timelines (20 days for complaining party, 20 days for respondent, possible second submissions within 15 days), hearing locations (Brussels if Indonesia complains, Jakarta if EU complains), virtual hearing options, confidentiality rules, and amicus curiae submissions limited to 15 pages.
The proposal now awaits Council adoption. The agreement is expected to boost trade and investment between the EU and Indonesia, but raises concerns for EU businesses competing with Indonesian SOEs, which benefit from exemptions from competition rules. The detailed lists of energy goods and raw materials ensure market access for EU importers, while the dispute settlement mechanism provides a structured process for resolving conflicts. The agreement also impacts Indonesian SOEs, which gain flexibility in certain activities, and EU exporters of goods and services, who gain improved market access to Indonesia's government procurement.