Transparency
Each Party shall make transparent with respect to any subsidy granted or maintained within its territory with regard to enterprises producing goods:
the legal basis of the subsidy;
the form of the subsidy; and
the amount of the subsidy or the amount budgeted for the subsidy.
A Party shall be considered to have met the requirement in paragraph (1) if the subsidy is notified under an applicable WTO agreement or if the information required under paragraph (1) is made available by the Party or on their behalf on a publicly accessible website by 31 December of the calendar year subsequent to the year in which the subsidy was granted or maintained.
At the request of the other Party, a Party shall endeavour to provide available information on subsidies granted or maintained to enterprises supplying services within its territory, including:
the legal basis of the subsidy;
the form of the subsidy; and
the amount of the subsidy or the amount budgeted for the subsidy.
Article Article 13.11
Consultations
Notwithstanding the transparency requirements set out in paragraph 1 of Article 13.10 (Transparency), a Party (hereinafter referred to as "requesting Party") may request additional information from the other Party (hereinafter referred to as "responding Party") about a subsidy granted by the responding Party. Such request shall explain the reasons for requesting the additional information. The requested information may concern information which is sufficiently specific to enable a Party to evaluate the trade effects and to understand the operation of the subsidy concerned as foreseen by Article 25 of the SCM Agreement.
The responding Party shall provide the information requested pursuant to paragraph 1 to the requesting Party in writing no later than 105 days after the date of notification of the request. If the responding Party does not provide, wholly or partially, the information requested by the requesting Party, the responding Party shall explain the reasons for not providing such information in its written response as required by this paragraph.
If, at any time after making a request for additional information pursuant to paragraph 1, the requesting Party considers that a subsidy granted by the responding Party with regard to enterprises producing goods is likely to impact its trade and investment interests, it may express its concern in writing to the responding Party together with an appropriate explanation and request consultations on the matter.
Consultations between the Parties to discuss the concerns raised shall be held within 75 days after the date of delivery of the request for consultations unless the Parties agree otherwise
The Parties shall attempt to the greatest extent possible to arrive at a mutually satisfactory resolution of the matter.
If, at any time, a Party considers that a subsidy granted by the responding other Party with regard to enterprises supplying services is likely to impact its interests, it may express its concern in writing to the responding Party and together with an appropriate explanation request consultations on the matter with a view to arrive at an amicable and mutually satisfactory resolution of the matter.
Any information exclusively obtained or exchanged during consultations and any resolution reached between the Parties as a result of consultations under this Article shall be without prejudice to the rights of the Parties in any further proceedings, and only be used in the framework of this Agreement.
Article Article 13.12
Use of Subsidies
Each Party shall ensure that enterprises use the subsidies provided by a Party only for the policy objective or purpose for which the subsidies have been granted.5
Article Article 13.13
Dispute Settlement
Chapter Chapter 22 (Dispute Settlement) Does Not Apply to this Section.SECTION C
Article Article 13.14
For the purposes of this Section, the following definitions shall apply:
“state-owned enterprise” means an enterprise including any subsidiary, in which a Party:
directly owns more than 50 per cent of the enterprise’s subscribed capital
controls, directly or indirectly the exercise of more than 50 per cent of the voting rights;
holds the power to appoint more than half of the members of the enterprise’s board of directors or any other equivalent management body; or
can exercise control6 over the strategic decisions of the enterprise.
“commercial activities” means activities, the end result of which is the production of a good or supply of a service, which will be sold in the relevant market in quantities and at prices determined by the enterprise and are undertaken with an orientation towards profit-making 7.
“commercial considerations” means price, quality, availability, marketability, transportation and other terms and conditions of purchase or sale; or other factors that would normally be taken into account in the commercial decisions of a privately owned enterprise operating according to market economy principles in the relevant business or industry.
5 For greater certainty, each Party may have its own means of ensuring such purpose and when a Party has set up the relevant legislative framework and administrative procedures to this effect, the obligation is considered to be fulfilled.
6 For the establishment of control, all relevant legal and factual elements arrangement shall be taken into account on a case by case basis.
7 For greater certainty, this excludes activities undertaken by an enterprise for activities which are on: (a) non-profit basis; or (b) cost recovery basis.
"Arrangement" means the Arrangement on Officially Supported Export Credits, developed within the framework of the OECD or a successor undertaking, whether developed within or outside of the OECD framework that has been adopted by at least 12 original WTO Members that were Participants to the Arrangement as of 1 January 1979.
Article Article 13.15
The Parties confirm their rights and obligations under paragraphs 1 through 3 of Article XVII of the GATT 1994, the Understanding on the Interpretation of Article XVII of the GATT 1994, as well as under paragraphs 1, 2 and 5 of Article VIII of the GATS.
This Section applies to state-owned enterprises, engaged in a commercial activity that may potentially affect trade and investment between the Parties. Where they engage both in commercial and non-commercial activities, only the commercial activities are covered by this Section.
Article Article 13.17 (Non-discrimination and Commercial Considerations) Does Not Apply to Those Activities of State-owned Enterprises of a Party for Which a Party Has Taken Measures on a Temporary Basis In Response to a National or Global Economic Emergency or In Response to a Natural Disaster, Calamity, or Food Scarcity.
This Section does not apply to those activities of state-owned enterprises of a Party which are related to national defence and security.
This Section applies to state-owned enterprises at the level of central government in accordance with Annex 14.A (Specific Rules for Indonesia on State-Owned Enterprises).
This Section does not apply to situations where state-owned enterprises act as procuring entities conducting procurement for governmental purposes and not with a view to commercial resale or with a view to use in the production of a good or in the supply of a service for commercial sale8.
This Section does not apply to any service supplied in the exercise of governmental authority.
This Section does not apply to state-owned enterprises, if in any one of the three previous consecutive fiscal years the annual revenue derived from the commercial activities of the enterprise was less than 200 million SDR.
Article Article 13.17 (Non-discrimination and Commercial Considerations) Does Not Apply to the Services Sectors Which Are Outside the Scope of this Agreement as Set Out In Article 8.12
8 This is without prejudice to the commitments made by the Parties in Chapter 11 (Government procurement), including, in particular, in Annex 11 (Market access schedules).
(Scope and Definitions) of Section C (Cross-Border Supply of Services of Chapter 8 (Investment Liberalisation and Trade in Services)
.
Article Article 13.17 (Non-discrimination and Commercial Considerations) Does Not Apply to the Extent That a State-owned Enterprise of a Party Makes Purchases and Sales of Services In Sectors, Which Fall Outside the Scope of Liberalisation of That Party Pursuant to Article 8.16 (Schedule of Specific Commitments) of Section C (Cross-Border Supply of Services) of Chapter 8 (Investment Liberalisation and Trade In Services)
This Section shall apply to Indonesia in accordance with the specific rules set out in Annex 13-C (Specific Rules of Indonesia on State-owned Enterprises).
Article 13.17 (Non-discriminatory treatment and commercial considerations) does not apply to the supply of financial services by a state-owned enterprise pursuant to a public service mandate, if that supply of financial services:
supports exports or imports, provided that those financial services are:
not intended to displace commercial financing; or
offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or
supports private investment outside the territory of the Party, provided that those financial services are:
not intended to displace commercial financing; or
offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or
is offered on terms consistent with the Arrangement defined in point (d) of Article
13.14 (Definitions), provided that it falls within the scope of that Arrangement.
This Section shall apply as from three (3) years after entry into force of this Agreement.
Article Article 13.16
Without prejudice to the Parties’ rights and obligations under this Section, nothing in this Section prevents the Parties from establishing or maintaining state-owned enterprises.
Neither Party shall require or encourage a state-owned enterprise, to act in a manner inconsistent with this Section.
Article Article 13.17
Each Party shall ensure that its state-owned enterprises, when engaging in commercial activities act in accordance with commercial considerations in their purchases or sales of goods or services except to fulfil any public service mandate that are not inconsistent with subparagraph (2).
Each Party shall ensure that its state-owned enterprises, when engaging in commercial activities:
in its purchase of a good or a service
accords to a good or a service supplied by an enterprise of the other Party treatment no less favourable than that which it accords to a like good or a like service supplied by enterprises of the Party; and
accords to a good or a service supplied by enterprises that are investments of investors of the other Party treatment no less favourable than that which it accords to a like good or a like service supplied by enterprises that are investments of investors of the Party in the relevant market in the Party; and
in its sale of a good or a service:
accords to an enterprise of the other Party treatment no less favourable than that which it accords to enterprises of the Party; and
accords to enterprises that are investments of investors of the other Party treatment no less favourable than that which it accords to enterprises that are investments of investors of the Party in the relevant market in the Party.
Paragraphs 1 and 2 do not preclude state-owned enterprises, from:
purchasing or supplying goods or services on different terms or conditions, including those relating to price provided that such different terms or conditions or refusal is undertaken in accordance with commercial considerations; or
refusing to purchase or supply goods or services, provided that such different terms or conditions or refusal is undertaken in accordance with commercial considerations.
Article Article 13.18
The Parties shall endeavour to make best use of relevant international best practices in governing state-owned enterprises inter alia, the OECD Guidelines on Corporate Governance of State-Owned Enterprises.
Each Party shall ensure that any body exercising a regulatory function that it establishes or maintains
is independent from and not accountable to any of the enterprises that it regulates, and
acts impartially9 in like circumstances with respect to all enterprises that it regulates, including in like circumstances with respect to all enterprises regulated by that body, including state-owned enterprises.10
Each Party shall ensure the enforcement of laws and regulations to state-owned enterprises in a consistent and non-discriminatory manner.
Article Article 13.19
A Party which has reason to believe that its interests under this Section are being adversely affected by the commercial activities of a state-owned enterprise of the other Party, and subject to the scope of this Section as defined in Article 13.15 (Scope) may request the other Party in writing to supply information about the commercial activities of such state-owned enterprise related to the carrying out of the provisions of this Section.
The requested Party shall provide the following information, provided that the request includes an explanation of how the activities of a state-owned enterprise may be affecting the interests of the requesting Party under this Section and indicates which of the following information shall be provided:11
the ownership and the voting structure of such state-owned enterprise, indicating the percentage of shares and the percentage of voting rights that a Party, its state-owned enterprises, cumulatively own, and the percentage of voting rights that they cumulatively hold, in the state-owned enterprise;
9 For greater certainty, the impartiality with which the regulatory body exercises its regulatory functions is to be assessed by reference to a general pattern or practice of that regulatory body.
10 For greater certainty, for those sectors in which the Parties have agreed to specific obligations relating to the regulatory body in other Chapters, the relevant provision in the other Chapters as set out in this Agreement shall prevail.
11 For greater certainty, in the event that the specified information has been published, the obligation of a Party is considered to be fulfilled.
a description of any special shares or special voting or other rights that a Party, its state-owned enterprises hold, where such rights differ from the rights attached to the general common shares of such state-owned enterprise;
a description of the organisational structure of the enterprise, the composition of its board of directors or of an equivalent management body; and cross-holdings and other links with other state-owned enterprises;
information regarding which government departments or public bodies regulate and/or monitor the state-owned enterprises, description of the reporting requirements imposed on it by those departments or public bodies, and the rights and practices of the government or any public bodies in the appointment, dismissal or remuneration of leading officials, members of its board of directors, commissioners, or any other equivalent management body;
annual revenue over the most recent 3-year period of a state-owned enterprise;
any exemptions, immunities and related measures from which a state-owned enterprise benefits under the laws and regulations of the requested Party;
any additional information regarding a state-owned enterprise that is publicly available, including annual financial reports and third-party audits.
If the requested information is not available to the Party, that Party shall provide the reasons for this in writing to the other Party who requested the information.
Article Article 13.20
The Parties shall seek to resolve any concerns arising from the implementation of this Section through technical consultations pursuant to this Article prior to initiating dispute settlement pursuant to Chapter 22 (Dispute settlement). The technical consultations shall endeavour to arrive at mutually satisfactory resolution of the concerns12.
For the purposes of paragraph 1, any Party may make a request to the other Party to hold technical consultations.
The request shall be made in writing13 and identify:
12 For greater certainty, technical consultations pursuant to this Article shall not replace consultations under Article [X (Consultations) of Chapter 22 (Dispute Settlement), unless the Parties agree otherwise.
13 For greater certainty, nothing in this Article limits the mode of delivery of such a request in writing. In the case the request is sent by electronic means, the requested Party shall promptly confirm the receipt of such a request and no later than within 14 calendar days of receipt.
the matter or measure at issue;
provisions of this Section to which the concerns are related to; and
the reasons for the request, including a description of the requesting Party’s concerns regarding the measures or matters.
At the request of either Party, the Parties shall meet to discuss the concerns raised in the request, in person or by any technological means available to the Parties. If the meeting is held in person, it shall be held in the capital of the requested Party, unless the Parties agree otherwise.
The Parties shall endeavour to resolve the matter as expeditiously as possible within 60 calendar days from the date of receipt of the request. If the requesting Party believes that the matter is urgent and require immediate settlement, it may request a shorter time frame. In such cases, the requested Party shall give positive consideration to such request.
A Party may request or exchange further information relevant to paragraph 2, and the information obtained or communications between the Parties under this Article shall be confidential unless the Parties agreed otherwise.
Any resolution reached between the Parties as a result of technical consultations under this Article shall be notified to the Trade Committee and shall be without prejudice to the rights of the parties in any further proceedings, and only be used in the framework of this agreement.
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 14
ENERGY AND RAW MATERIALS
Article ARTICLE 14.1
Principles
Each Party retains the sovereign right to determine whether areas are available for exploration and production of energy goods and raw materials in its territory, as well in its archipelagic and territorial waters, continental shelf and its exclusive economic zone, determined in accordance with the UN Convention on the Law of the Sea.
Consistent with the provisions of this Chapter, the parties preserve their right to adopt, maintain, and enforce measures necessary to pursue legitimate public policy objectives, such as securing the supply of energy goods and raw materials, protecting society, the environment, public health and consumers and promoting public security and safety.
Article ARTICLE 14. 2
Objectives
The objectives of this Chapter are:
to facilitate and increase existing and future trade and investment and enhance cooperation between the Parties in the areas of energy and raw materials including renewable energy and energy efficiency with a view to favour the energy transition, contributing to the achievement
of the Parties’ respective net-zero greenhouse gas emissions goals, including through the use of green technologies;
to improve environmental sustainability in the areas of energy and raw materials.
Article ARTICLE 14.3
Definitions
For the purposes of this Chapter:
"authorisation" means the permission, license, concession or similar administrative or contractual instrument by which the competent authority of a Party entitles an entity to exercise a certain economic activity in its territory;
"entity" means any natural person or enterprise or group thereof;
"energy goods" means, for the purpose of this Agreement, based on the Harmonized System of the Customs Co-operation Council and, where applicable, the Combined Nomenclature of the European Communities, natural gas including liquefied natural gas, liquefied petroleum gas (LPG) (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);
"raw materials" means substances used in the manufacture of industrial products, excluding processed fishery products, agricultural products; for the purpose of this Agreement, 'raw materials' consist of salt, sulphur earths and stone, plastering materials, lime and cement (HS 25), ores, slag and ash (HS 26), goods included in HS 27, inorganic chemicals (HS 28), organic chemicals (HS 29) fertilizers (HS 31), natural rubber (HS 40), raw hides, skins and leather (HS 41), pulp of wood (HS 47), and basic & precious metals and processed minerals (ex HS 71, 72; 74-76; 78-81). This definition excludes uranium/thorium (HS 26.12) and radioactive elements/isotopes (HS 28.44, 28.45), but includes monazite (HS 26.12.20.10) and excludes specialty pharmaceuticals and chemicals (in HS 29 chapter). This definition includes also HS 38011000 Graphite, as well as HS 3815 11 00 “ Reaction initiators, reaction
accelerators and catalytic preparations, not elsewhere specified or included: With nickel or nickel compounds as the active substance”;
"renewable energy" means energy, including electric energy, produced from renewable sources in a sustainable manner, such as wind, solar, geothermal, hydrothermal, ocean, osmotic and ambient energy, hydropower, biomass, biofuels, landfill gas, sewage treatment plant gas or biogases1.
"biofuels" means liquid fuel produced from biomass consisting, among others, of vegetable oils including palm oil, rapeseed oil or soybean oil;
"renewable fuels" means biofuels, bioliquids, biomass fuels and renewable fuels of non-biological origin;
"renewable fuels of non-biological origin" means liquid and gaseous fuels, including hydrogen and its derivatives, the energy content of which is derived from renewable sources other than biomass;
“balancing” means all actions and processes, in all timelines, through which network operators2 ensure, in a continuous way, maintenance of the system frequency within a predefined stability range and compliance with the amount of reserves needed with respect to the required quality; and
"non-household customer" means an entity that uses, processes or trades any of the raw materials for the purposes of performing an economic activity.
Article ARTICLE 14.4
Authorisation for exploration or production of energy goods and raw materials
If a Party requires an authorisation to explore or produce energy goods or raw materials in its territory, that Party shall ensure that the requirements and procedures for granting the authorisation,
1 This definition is without prejudice to sustainability requirements that each Party may introduce in its law in order to recognise energy as renewable, provided that such requirements are consistent with this Agreement and with international trade rules by which the Parties are bound, in particular in relation to the principle of non-discrimination 2 For greater certainty, for Indonesia this includes also electricity suppliers, based on Indonesia law.
including the identification of the relevant area or part thereof, and the proposed date or time limit for requesting or granting the authorisation, are established in advance, are made publicly available in such a manner as to enable interested entities to apply and are non-discriminatory between entities of each Party.
Each Party may require an entity which has been granted an authorisation to produce upstream hydrocarbons to pay a financial contribution or a contribution in kind. The contribution shall not discriminate between entities of each Party and shall be determined in such a manner so as not to interfere with the management and the decision-making process of the entity which has been granted an authorisation.
Each Party shall ensure that entities of either Party which have tried but failed to obtain an authorisation or concession from the other Party are provided with the reasons for the rejection of its application so as to enable such a person to have recourse to procedures for appeal or review where necessary. The procedures for appeal or review shall be made public in advance. In the case of Indonesia, this paragraph shall not apply to hydrocarbons.