The Council of the European Union has published a proposal for a Council Decision on the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, dated 29 June 2026. The document includes detailed annexes covering government procurement schedules, state-owned enterprise (SOE) rules, lists of energy goods and raw materials, and dispute settlement procedures.
On government procurement, Annex 11-A (EU schedule) and Annex 11-B (Indonesia schedule) specify coverage for central, sub-central, and other entities, goods, services, construction services, general notes, and publication media. These schedules will open up public procurement markets between the parties, affecting EU and Indonesian suppliers and contractors.
Annex 13-A on state-owned enterprises provides that Section C of Chapter 13 (Competition) shall not apply to Indonesia's equitisation, restructuring, or divestment of assets, provided there is no discrimination against EU enterprises. Article 13.17 shall not apply to purchases by an SOE from Indonesian SMEs if pursuant to Indonesian law. Section C applies only to 23 listed SOEs as of 23 September 2025, including PT Telkom Indonesia, PT Pertamina, and PT Perusahaan Listrik Negara, with specific exceptions for activities like high-speed railway, food stock, coal sales, subsidised oil/gas, electricity distribution, and subsidised fertiliser. Indonesia may add enterprises; the Trade Committee will review the list one year after application and at least every three years. This carve-out balances Indonesia's development needs with EU market access interests.
Annex 14-A lists energy goods covered by the agreement, including natural gas (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, ores (excluding uranium and thorium but including monazite), goods in HS 27, inorganic chemicals (excluding radioactive elements), organic chemicals (excluding specialty pharmaceuticals), fertilisers, graphite, nickel catalysts, natural rubber, raw hides, pulp of wood, and basic/precious metals. These lists will facilitate trade in energy and raw materials, impacting EU industries reliant on Indonesian resources and Indonesian exporters.
Annex 22-A sets out dispute settlement rules. Notifications are to be sent to the European Commission's DG Trade and Indonesia's Ministry of Trade. Panellist selection is by lot, with availability confirmed within five days. Remuneration is based on WTO standards; assistant remuneration is ≤50% of the panellist's. An organisational meeting must be held within seven days. Written submissions: the complaining Party has 20 days, the complained Party has 20 days from receipt; second submissions are allowed within 15 days. Hearings are to be held in Brussels (if Indonesia complains) or Jakarta (if EU complains), with virtual/hybrid hearings possible. Confidential information includes confidential business info, info protected under the Agreement or Party law, or info impeding law enforcement. Amicus curiae submissions are allowed if received by the panel's deadline (no later than the first written submission of the complained Party), ≤15 pages, directly relevant, and in the working language. These procedures aim to ensure efficient and transparent dispute resolution, affecting legal certainty for businesses.
The proposal now requires adoption by the Council, after which the European Parliament will need to give its consent before the agreement can be signed and ratified.