Regulatory Watch · Trade Agreements

EU–Indonesia CEPA Negotiation Tracker

Tracking the EU–Indonesia Comprehensive Economic Partnership Agreement negotiations — round outcomes, outstanding issues, sector-level developments, and implementation timeline.

This tracker is updated periodically. For a current, tailored analysis of regulatory changes affecting your specific business — order a Regulatory Monitoring Brief.

Current Regulatory Status

Regulation / PolicySummaryStatusLast Updated
CEPA Negotiations — Overall StatusNegotiations ongoing. Multiple rounds completed since 2016 restart. Both parties publicly committed to accelerated conclusion. No text concluded as of mid-2026.PendingJune 2026
Palm Oil ChapterMost contested chapter. Indonesia seeks expanded EU market access; EU pressing on EUDR compliance and deforestation standards. No agreement reached.WatchJune 2026
Investment Protection ChapterDiscussions on investor-state dispute settlement mechanism ongoing. EU preference for Investment Court System; Indonesia preference for conventional arbitration.PendingQ1 2026
Services LiberalizationFinancial services and professional services ownership caps remain a key negotiating issue. Indonesia signaled openness to liberalization for specific sub-sectors.PendingQ2 2026
Government Procurement ChapterIndonesia maintaining domestic preference positions for state procurement. EU seeking national treatment for EU bidders on major procurement contracts.PendingQ2 2026
EU Deforestation Regulation (EUDR)EUDR implementation progressing independently of CEPA. Due diligence requirements for palm oil, cocoa, wood, and other commodities. Affects Indonesian exporters to EU now.Active2026
IP Protection ChapterGI (geographical indication) protections and IP enforcement standards — less contested. Broadly aligned with WTO TRIPS-plus standard.Pending—

Negotiation Progress

The EU–Indonesia CEPA has been in negotiation since 2016, with a significant pause during the COVID period. Political momentum has accelerated following President Prabowo's 2024 election, reflecting Indonesia's strategy of diversifying its economic partnerships beyond the China-concentrated FDI of the preceding decade. As of mid-2026, the negotiation has covered most substantive chapters, with the palm oil, investment protection, and services liberalization chapters remaining the primary unresolved items.

Palm Oil and the EUDR

The intersection of the EUDR and the CEPA is the most politically sensitive dimension of the negotiation. Indonesia has formally protested the EUDR as a non-tariff barrier that discriminates against Indonesian palm oil, and the CEPA's sustainable development chapter will need to provide some framework for managing the EUDR compliance obligation. For businesses with palm oil in their supply chain — food, cosmetics, oleochemicals — EUDR compliance is a current obligation regardless of CEPA timing, and compliance systems should already be in development.

What a Concluded CEPA Would Mean

A concluded CEPA would provide binding market access commitments, national treatment for investment, and a tariff schedule replacing the current GSP+ arrangement. The transition periods for tariff elimination would likely be phased over 5–10 years depending on sector sensitivity. For businesses planning market entry or supply chain restructuring, the CEPA is worth factoring into medium-term planning, but current rules must govern near-term operational decisions.

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