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.
| Regulation / Policy | Summary | Status | Last Updated |
|---|---|---|---|
| CEPA Negotiations — Overall Status | Negotiations ongoing. Multiple rounds completed since 2016 restart. Both parties publicly committed to accelerated conclusion. No text concluded as of mid-2026. | Pending | June 2026 |
| Palm Oil Chapter | Most contested chapter. Indonesia seeks expanded EU market access; EU pressing on EUDR compliance and deforestation standards. No agreement reached. | Watch | June 2026 |
| Investment Protection Chapter | Discussions on investor-state dispute settlement mechanism ongoing. EU preference for Investment Court System; Indonesia preference for conventional arbitration. | Pending | Q1 2026 |
| Services Liberalization | Financial services and professional services ownership caps remain a key negotiating issue. Indonesia signaled openness to liberalization for specific sub-sectors. | Pending | Q2 2026 |
| Government Procurement Chapter | Indonesia maintaining domestic preference positions for state procurement. EU seeking national treatment for EU bidders on major procurement contracts. | Pending | Q2 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. | Active | 2026 |
| IP Protection Chapter | GI (geographical indication) protections and IP enforcement standards — less contested. Broadly aligned with WTO TRIPS-plus standard. | Pending | — |
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.
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.
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.
A Regulatory Monitoring Brief covers what changed in the past 60–90 days in this area — new rules, enforcement actions, and what your business needs to do. Delivered in 3–5 business days.
Order a Monitoring Brief — from $99 →