The Council of the European Union has published a proposal for a Council Decision on the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, which includes a Protocol on Mutual Administrative Assistance in Customs Matters and a Protocol on Sustainable Palm Oil. The document, dated 29 June 2026, sets out the legal framework for customs cooperation and sustainable palm oil trade as part of the broader trade agreement.
The customs protocol (Articles 1-17) obliges both parties' customs authorities to assist each other in preventing, investigating, and combating customs law violations. Assistance may be provided on request (Article 3) or spontaneously (Article 4), with requests to be made in writing or orally in urgent cases, confirmed in writing, in an official language of the requested authority or English (Article 5). Execution of assistance follows the requested party's laws and available resources (Article 6). Officials may be present in the other party's territory only in an advisory capacity, without uniform or weapons (Article 8). Information exchanged is confidential and used only for the protocol; personal data transfer follows the providing party's data protection laws (Article 12). Implementation is entrusted to Indonesia's customs authorities and the European Commission with Member States' customs authorities (Article 15).
The Sustainable Palm Oil Protocol (Articles 1-3) aims to enhance trade in sustainable palm oil, support smallholders and SMEs, and address deforestation and peatland management. Both parties acknowledge sustainability assurance schemes such as ISPO (Indonesian Sustainable Palm Oil) and commit to increasing mutual understanding of their respective requirements (Article 3).
The proposal now awaits adoption by the Council, after which the European Parliament will be asked to give its consent. The agreement is expected to boost bilateral trade while addressing environmental concerns linked to palm oil production. Stakeholders impacted include EU and Indonesian customs authorities, palm oil producers and exporters, smallholders and SMEs in Indonesia, and EU importers and consumers of palm oil products. The customs protocol may reduce trade facilitation but enhances enforcement against illegal trade, while the palm oil protocol could increase market access for certified sustainable palm oil but impose additional compliance costs on producers. No prior coverage of this file exists in the last 180 days.