4 Recalling Article 10.2 (Right to regulate), the Parties reaffirm their respective right to regulate consistently with this Agreement to achieve legitimate policy objectives, including ensuring security and stability of telecommunication infrastructure.
5 For greater certainty, the Parties share the understanding that high standards of protection can be ensured through different instruments and safeguards.
Neither Party shall impose customs duties on electronic transmissions.6
For greater certainty, the Parties agree that consistent with the principles of GATS, trade in services is not subject to customs duties.
The practice referred to in paragraph 1 is in accordance with the WTO Ministerial Decision (WT/MIN (24)/38), adopted on 2 March 2024, in relation to the Work Programme on Electronic Commerce
Each Party may adjust their practice referred to in paragraph 1 in light of any further WTO Ministerial Decisions or Agreement in relation to the Work Programme on Electronic Commerce. Such adjustment shall be without prejudice to the Parties’ commitments in Article 10.5 (Reduction or Elimination of Customs Duties) of Chapter 2 (National Treatment and Market Access for Goods).
For greater certainty, paragraphs 1 to 4 shall not preclude any Party from applying customs procedures for public policy purposes, or from imposing internal taxes, fees, or other charges on electronic transmission, provided that such taxes, fees, or charges are imposed in a manner consistent with the WTO Agreement.
Article Article 10.8
A Party shall not require prior authorisation solely on the ground that a service is provided by electronic means or adopt or maintain any other requirement having equivalent effect.
For greater certainty, a Party is not precluded from requiring prior authorisation for an online service, or from adopting or maintaining any other requirement having an equivalent effect, based on other policy grounds, such as consumer protection.
Paragraph 1 does not apply:
to telecommunications services, broadcasting services, gambling services and legal representation services; or
services of notaries or equivalent professions or other relevant services, to the extent that they involve a direct and specific connection with the exercise of public authority.
Article Article 10.9
6 Paragraph 1 is without prejudice to Parties’ position on whether electronic transmissions should be categorised as trade in services or goods.
Except as otherwise provided for under the Parties laws and regulations, The Parties shall ensure that their legal systems allow contracts to be concluded by electronic means and that the legal requirements for contractual processes neither create obstacles for the use of electronic contracts nor result in such contracts being deprived of legal effect and validity for having been made by electronic means.7
Article Article 10.10
Except in circumstances otherwise provided for under its laws and regulations, a Party shall not deny the legal effect and admissibility as evidence in legal proceedings of an electronic trust and electronic authentication service solely on the basis that the service is in electronic form.
Neither Party shall adopt or maintain measures regulating electronic trust and electronic authentication services that would:
prohibit parties to an electronic transaction from mutually determining the appropriate electronic methods for their transaction; or
prevent parties to an electronic transaction from having the opportunity to prove to judicial and administrative authorities that their electronic transaction complies with any legal requirements with respect to electronic trust and electronic authentication services.
Notwithstanding paragraph 2, each Party may require that, for a particular category of electronic transactions, the method of electronic authentication meets certain performance standards that shall be objective, transparent and non-discriminatory or is certified by an authority accredited in accordance with its laws and regulations.
Article Article 10.11
The Parties recognise the importance of maintaining and adopting transparent and effective measures that contribute to consumer trust, including but not limited to measures that protect consumers from fraudulent and deceptive commercial practices when they engage in electronic commerce.
7 For greater certainty, certain requirements for the legal effect and validity of contracts as provided in the Parties laws and regulations shall not be considered as obstacles for the use of electronic contracts.
To this end, each Party shall adopt or maintain measures that contribute to consumer trust, including measures that proscribe fraudulent and deceptive commercial practices.
The Parties recognise the importance of cooperation between their respective national consumer protection agencies or other relevant bodies on activities related to electronic commerce in order to protect consumers and enhance consumer trust.
Article Article 10.12
Each Party shall ensure that end-users are effectively protected against unsolicited direct marketing communications. To this end, in particular each Party shall ensure that natural and legal persons do not send direct marketing communications to consumers who have not given their prior consent8.
Notwithstanding paragraph 2, each Party shall allow natural and legal persons which have collected, in accordance with their Party’s own laws and regulations, a consumer’s contact details in the context of the sale of a product or a service, to send direct marketing communications to that consumer for their own similar products or services.
Each Party shall ensure that direct marketing communications are clearly identifiable as such, clearly disclose on whose behalf they are made and contain the necessary information to enable end-users to request cessation free of charge and at any moment.]
Article Article 10.13
A Party shall not require the transfer of, or access to, source code of software owned by a juridical or natural person of the other Party as a condition for the import, export, distribution, sale or use of such software, or of products containing such software, in its territory.
For greater certainty:
article 23.1 (General exceptions)] of Chapter 23 (Exceptions)], Article 23.2 (Security exceptions)] of Chapter 23 (Exceptions)] and Article 8.49 (Prudential carve-out)] of Chapter 8 (Investment Liberalisation and Trade in Services)] may apply to measures of a Party adopted or maintained, for instance, in the context of a certification procedure;
paragraph 1 does not apply to the voluntary transfer of or granting of access to source code on a commercial basis by a person of the other Party, for instance in the context of a public procurement transaction or a freely negotiated contract.
8 Prior consent shall be defined in accordance with each Party’s own laws and regulations.
paragraph 1 does not affect the right of regulatory, law enforcement or judicial bodies of a Party to require the modification of source code software to comply with its laws and regulations that are not inconsistent with this Agreement.
Nothing in this Article shall affect:
the right of regulatory authorities, law enforcement, judicial or conformity assessment bodies 9 of a Party to require the transfer of, or access to, source code of software, either prior to or following import, export, distribution, sale or use of such software, for investigation, inspection or examination, enforcement action or judicial proceeding purposes, to secure compliance with its laws or regulations pursuing legitimate public policy objectives10, subject to safeguards against unauthorised disclosure;
requirements by a court, administrative tribunal, competition authority or other relevant body of a Party to remedy a violation of competition laws; or
requirements pursuant to a Party’s laws or regulations that are not inconsistent with the Agreement to provide proportionate and targeted access to the source code of software that is necessary to address barriers to entry in digital markets to ensure these markets remain competitive, fair, open and transparent.
the protection and enforcement of intellectual property rights or
a public procurement transaction
Article Article 10.14
The Parties recognise that threats to cybersecurity undermine confidence in electronic commerce.
9 For the purpose of this Article, ‘conformity assessment body’ refers to a relevant governmental body or authority of a Party, or non-governmental body in the exercise of powers delegated by a governmental body or authority of the Party, carrying out anassessment of conformity in accordance with the applicable laws or regulations of that Party.
10 For the purpose of this Article, “legitimate public policy objective” shall be interpreted in an objective manner and shall enable the pursuit of objectives such as to protect public security, public morals, or human, animal or plant life or health, to maintain public order, to protect other fundamental interests of society such as cybersecurity, safe and trustworthy artificial intelligence, or protecting against the dissemination of disinformation, or other similar objectives of public interest, taking into account the evolving nature of digital technologies and related challenges.
In order to identify and mitigate those threats and thereby facilitate electronic commerce, Parties recognise the importance of:
building the capabilities of their respective national entities responsible for cybersecurity incident response; and
using collaboration mechanisms, as appropriate, to cooperate, anticipate, identify and mitigate malicious intrusions or dissemination of malicious code that affect electronic networks of the Parties and use those mechanisms to swiftly address cybersecurity incidents, as well as for the sharing of information for awareness and best practices.
Given the evolving nature of cybersecurity threats and their negative impact on electronic commerce, the Parties recognise that risk-based approaches are generally effective in addressing those threats and minimising trade barriers. Accordingly, each Party shall endeavour to employ, and shall encourage enterprises within its jurisdiction to use, risk-based approaches that rely on open and transparent standards and risk management best practices to identify and protect against cybersecurity risks and to detect, respond to, and recover from cybersecurity incidents.
Article Article 10.15
The Parties shall maintain a dialogue on regulatory issues raised by digital trade, which shall inter alia address the following issues:
the recognition and facilitation of interoperable cross-border electronic trust and authentication services;
the treatment of direct marketing communications;
the protection of consumers in the ambit of electronic commerce including building consumer confidence;
the challenges for micro, small and medium-sized enterprises in digital trade; and
any other issue relevant for the development of digital trade.
Such dialogue shall focus on exchange of information on the Parties’ respective laws and regulations on the issues referred to in paragraph 1 as well as on the implementation of such laws and regulations.
Recognising the global nature of electronic commerce, the Party shall endeavour to cooperate to:
work together to assist micro, small and medium-sized enterprises to overcome obstacles to its use;
exchange information and share views on consumer access to products and services offered online; and
encourage business sectors to develop methods or practices that enhance consumer confidence to foster the use of electronic commerce.
The parties shall, where appropriate, cooperate and participate actively in international fora to promote the development of digital trade.
Disclaimer: In view of the European Commission's transparency policy, the Commission is publishing the texts of its Comprehensive Economic Partnership Agreement with Indonesia following the Ministerial announcement on 23 September 2025. These texts are published for information purposes only and may undergo further modifications including as a result of the process of legal revision. These texts are without prejudice to the final outcome of the Agreement between the EU and Indonesia. The texts will be final upon signature. The Agreement will become binding on the Parties under international law only after completion by each Party of its internal legal procedures necessary for the entry into force of the Agreement.
Chapter CHAPTER 11 GOVERNMENT PROCUREMENT
Article ARTICLE 11.1
Definitions
For the purposes of this Chapter:
"commercial goods or services" means goods or services of a type generally sold or offered for sale in the commercial marketplace to, and customarily purchased by, non-governmental buyers for non-governmental purposes;
"construction service" means a service that has as its objective the realization by whatever means of civil or building works, based on Division 51 of the United Nations Provisional Central Product Classification (CPC);
"days" means days means calendar days, unless otherwise specified
"electronic auction" means an iterative process that involves the use of electronic means for the presentation by suppliers of new prices and/or, where applicable, new values for quantifiable non-price elements of the tender related to the evaluation criteria resulting in a ranking or re-ranking of tenders;
"in writing or written" means any worded or numbered expression that can be read, reproduced and later communicated. It may include electronically transmitted and stored information;
"limited tendering" means a procurement method whereby the procuring entity contacts a supplier or suppliers of its choice;
"measure" means any law, regulation, procedure, administrative guidance or practice, or any action of a procuring entity relating to a covered procurement
"multi-use list" means a list of suppliers that a procuring entity has determined satisfy the conditions for participation in that list, and that the procuring entity intends to use more than once;
"notice of intended procurement" means a notice published by a procuring entity inviting interested suppliers to submit a request for participation, a tender, or both;
"offset" means any condition or undertaking that encourages local development or improves a Party’s balance-of-payments accounts, such as the use of domestic content, the licensing of technology, investment, counter-trade and similar action or requirement;
"open tendering" means a procurement method whereby all interested suppliers may submit a tender;
"person" means a natural person or a juridical person;
"procuring entity" means an entity covered under a Party’s market access schedule Section 1, 2 or 3 to Annex X
"publish" means to disseminate information in paper format or by electronic means that is distributed widely and is readily accessible to the general public;
"qualified supplier" means a supplier that a procuring entity recognizes as having satisfied the conditions for participation;
"selective tendering" means a procurement method whereby only qualified suppliers are invited by the procuring entity to submit a tender;
"services" includes construction services, unless otherwise specified;
"standard" means a document approved by a recognized body that provides for common and repeated use, rules, guidelines or characteristics for goods or services, or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a good, service, process or production method;
"supplier" means a person or group of persons that provides or could provide goods or services to procuring entity; and
"technical specification" means a tendering requirement that:
lays down the characteristics of goods or services to be procured, including quality, performance, safety and dimensions, or the processes and methods for their production or provision; or
addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service.
Article ARTICLE 11.2
Scope and coverage
Application of Agreement
This Chapter applies to any measure relating to a covered procurement, whether or not it is conducted exclusively or partially by electronic means.
For the purposes of this Chapter, "covered procurement" means procurement for governmental purposes:
of a good, a service, or any combination thereof:
as specified in each Party's Market Access Schedule provided in Annex 11; and
not procured with a view to commercial sale or resale, or for use in the production or supply of a good or a service for commercial sale or resale;
by any contractual means, including: purchase; lease; and rental or hire purchase, with or without an option to buy;
for which the value, as estimated in accordance with paragraphs 6 through 8, equals or exceeds the relevant threshold specified in a Party's Market Access Schedule provided in Annex 11, at the time of publication of a notice in accordance with Article 11.6;
by a procuring entity as specified in each Party's Market Access Schedule provided in Annex 11; and
that is not otherwise excluded from coverage in paragraph 3 or a Party's Market Access Schedule provided in Annex 11.
Except as otherwise provided in a Party's Market Access Schedule provided in Annex 11, this Chapter does not apply to:
the acquisition or rental of land, existing buildings or other immovable property or the rights thereon;
non-contractual agreements or any form of assistance that a Party provides, including cooperative agreements, grants, loans, equity infusions, guarantees and fiscal incentives
the procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;
public employment contracts;
goods or services that are procured by a covered entity internally; and
procurement conducted:
for the specific purpose of providing international assistance, including development aid;
under the particular procedure or condition of an international agreement relating to the stationing of troops or relating to the joint implementation by the signatory countries of a project; or
under the particular procedure or condition of an international organisation, or funded by international grants, loans or other assistance.
A procurement subject to this Chapter shall be all procurement covered by the Market Access Schedules of Indonesia and the European Union provided in Annex 11, in which each Party's commitments are set out as follows:
in Sub-Section 1, the central government entities whose procurement is covered by this Chapter
in Sub-Section 2, the sub-central government entities whose procurement is covered by this Chapter
in Sub-Section 3, all other entities whose procurement is covered by this Chapter;
in Sub-Section 4, the goods covered by this Chapter;
in Sub-Section 5, the services, other than construction services, covered by this Chapter;
in Sub-Section 6, the construction services covered by this Chapter;
in Sub-Section 7, any General Notes, including transitional measures for the application of this Chapter; and
in Sub-Section 8, the media in which the Party publishes its procurement notices, award notices, and other information related to its public procurement system as set out in this Chapter.
If a procuring entity, in the context of covered procurement, requires other entities or a person whose procurement is not covered under a Party's Market Access Schedule provided in Annex 11 to procure in accordance with particular requirements, Article 11.4 shall apply mutatis mutandis to such requirements.
Valuation
In estimating the value of a procurement for the purpose of ascertaining whether it is a covered procurement, a procuring entity shall:
neither divide a procurement into separate procurements nor select or use a particular valuation method for estimating the value of a procurement with the intention of totally or partially excluding it from the application of this Chapter; and
include the estimated maximum total value of the procurement over its entire duration, whether awarded to one or more suppliers, taking into account all forms of remuneration, including:
premiums, fees, commissions and interest; and
if the procurement provides for the possibility of options, the total value of such options
If an individual requirement for a procurement results in the award of more than one contract, or in the award of contracts in separate parts ('recurring contracts') the calculation of the estimated maximum total value shall be based on:
the value of recurring contracts of the same type of good or service awarded during the preceding 12 months or the procuring entity's preceding fiscal year, adjusted, if possible, to take into account anticipated changes in the quantity or value of the good or service being procured over the following 12 months; or
the estimated value of recurring contracts of the same type of good or service to be awarded during the 12 months following the initial contract award or the procuring entity's fiscal year.
In the case of procurement by lease, rental or hire purchase of a good or a service, or procurement for which a total price is not specified, the basis for valuation shall be:
in the case of a fixed-term contract:
if the term of the contract is 12 months or less, the total estimated maximum value for its duration; or
if the term of the contract exceeds 12 months, the total estimated maximum value, including any estimated residual value;
if the contract is for an indefinite period, the estimated monthly instalment multiplied by 48; and
if it is not certain whether the contract is to be a fixed-term contract, subparagraph (b) shall be used.
Article ARTICLE 11.3
Security and general exceptions
Nothing in this Chapter shall be construed to prevent a Party from taking any action or from not disclosing any information that it considers necessary for the protection of its essential security interests relating to the procurement:
of arms, ammunition or war material;
or to procurement indispensable for national security; or
for national defence purposes.