Article ARTICLE 14.5
Access to energy transport infrastructure
Each Party shall ensure that owners or operators of electricity and gas transmission and distribution networks3 in its territory grant non-discriminatory access to such infrastructure to entities of the other party under conditions not less favourable than those applicable to entities of that party that are authorised to produce gas or electricity.
Unless it follows automatically from the authorisation to produce gas or electricity for own use4, such access shall be granted within a reasonable period-of-time from the date of the request for access. Each Party must ensure that the terms for access and use are objective, transparent, non-arbitrary, and do not discriminate among users of such infrastructure, without prejudice to each Party's right to set the conditions for the right to produce gas, and electricity for own use.
3 For greater certainty, LNG terminals are part of the gas transport infrastructure as regulated in respective parties’ law and subject to the provision- article 6- in the same way as “transmission and distribution networks”.
4 In the case of Indonesia, access to electricity networks refers to electricity for own production and use, either remotely or on-site, as well as all other instances as provided for in their law.
Each Party shall maintain a regulatory body(ies) entrusted to impartially address or settle disputes regarding appropriate terms, conditions and tariffs for access and use of electricity and gas transmission and distribution networks within a reasonable period-of-time. Each Party shall ensure that entities of the other party aggrieved by a determination or decision of such body(ies) have the option to recourse to an independent appeal body which may or may not be a judicial authority.
Article ARTICLE 14.6
Electricity generated from renewable energy sources
The Parties recognise the important contribution renewable energy can make in reducing greenhouse gas emissions to mitigate climate change.
To this end, each Party shall:
seek to facilitate investment in renewable energy generation; and
seek to facilitate the integration of renewable energy generation into electricity systems.
With regard to access and use of electricity transport infrastructure5, each Party shall ensure that its own network owners and operators6, with respect to renewable electricity suppliers of the other Party:
enable a physical connection to be established between new renewable electricity generation facilities and the electricity network;
enable the reliable use of the electricity network to supply electricity generated by renewable electricity suppliers of the other Party;
provide or enable provision of balancing services; and
5 For greater certainty, this refers to instances of access to energy grids as provided for in Indonesia law.
6 For greater certainty, for Indonesia, the term ‘network owners and operators’ may include electricity suppliers if they hold responsibility for the transmission system operation under Indonesia Law .
take appropriate grid and market-related operational measures in order to minimise the curtailment of electricity produced from renewable energy sources.
This paragraph is without prejudice to the right of each Party to adopt or maintain derogations from the commitments under subparagraphs (a) to (d) of paragraph 2 based on objective and non-discriminatory criteria, provided such derogations are necessary to fulfil a legitimate policy objective, such as the need to maintain the stability of the electricity system.
Article ARTICLE 14.7
Cooperation on energy and raw materials
In accordance with the provisions of Chapter 17[Economic cooperation and capacity building], the Parties shall cooperate in the area of energy and raw materials with a view to, inter alia:7
reduce or eliminate trade and investment distorting measures in third countries affecting energy and raw materials while fully preserving the sovereign right over natural resources, in accordance with Article 14.1.
without prejudice to their respective policy preference, coordinate as appropriate their positions in international fora where trade and investment issues related to energy and raw materials are discussed and foster international programmes in the areas of energy efficient, renewable energy and raw materials;
foster exchange of aggregated market data in the area of energy and raw materials;
promote research, development and innovation in the areas of energy efficiency, renewable energy and raw materials;
foster exchange of information and best practices on domestic policy developments in the area of renewable energy and
7 The Provision of paragraph 1 subparagraph c and e of this article shall not extend to the geological and other minerals distribution data.
promote internationally recognized standards of safety and environmental protection for offshore oil, gas and mining operations, by increasing transparency, sharing information, including on industry safety and environmental performance.
Article ARTICLE 14.8
Assessment of environmental impact
Each Party shall ensure that- in accordance with its law - an environmental impact assessment is required to be carried out before that Party grants authorisation for a project related to the production of energy goods or raw materials, if the project by virtue, amongst others, of its nature, size or location may have a significant impact on the environment relating to the aspects listed in paragraph 2.
The environmental impact assessment shall identify and assess as appropriate the significant effects of the project on the following aspects: a) population and human health; b) biodiversity; c) land, soil, water, air and climate; and, d) cultural heritage and landscape, including the expected effects deriving from the vulnerability of the project to risks of major accidents and/or disasters that are relevant to the project concerned8.
Each Party shall ensure that an opportunity and an appropriate time period is given to the relevant entities9 to provide comments on the environmental impact assessment report carried out for the purposes of the requirement pursuant to paragraph 1.
Each Party shall take into account the findings of the environmental impact assessment and make the results of the process referred to in paragraph 3 available to the relevant entities10, prior to granting authorisation for the project.
8 For greater certainty, in accordance with Indonesia law, the identification of the significant effects of the projects on the factors of the environment from a) to d) may vary from one area to another.
9 For greater certainty, the relevant entities are:
For the EU, the “public concerned”, as defined in its law.
For Indonesia, directly affected communities as defined in its law. Environmental observers, researchers, or supporting non-governmental organizations who have fostered and/or assisted the directly affected communities may be involved as a part of the directly affected communities.
10 For greater certainty, the relevant entities are: For the EU, the public concerned;
For Indonesia, directly affected communities.
Article ARTICLE 14.9
Off-shore risk and safety
Each Party shall ensure that regulatory functions relating to safety and environmental protection of offshore oil and gas operations are conducted independently from functions, relating to economic development or licensing of offshore oil and gas operations, such as by ensuring that they are conducted by separate legal entities.
Each Party shall establish the conditions necessary for safe offshore, exploration and production of oil and gas in its territory, in order to protect the marine environment and coastal communities against pollution. These conditions shall be based on relevant international standards of safety and environmental protection for offshore oil and gas operations that are recognised by the Parties.
Article ARTICLE 14.10
Renewable fuels
The Parties recognise the important contribution of renewable fuels, also of non-biological origin, including renewable hydrogen and its derivatives, in reducing greenhouse gas emissions to address climate change.
With respect to renewable fuels including biofuels from palm oil, the Parties affirm they will act consistently with international trade rules by which they are bound, in particular in relation to the principle of non-discrimination, including, where applicable, the WTO Agreement on Technical Barriers to Trade.
In accordance with the Chapter 1811, the Parties shall, as appropriate, cooperate on convergence or harmonization of certification schemes for renewable fuels, such as with regards to lifecycle emissions, sustainability and safety standards.
Article ARTICLE 14.11
Energy transition
The Parties recognise the importance of rapidly increasing the deployment of emerging clean energy technologies and expansion of clean energy capacity, including by accelerating the deployment of net-zero technologies, such as hydropower, micro-hydro as well as wind (onshore and offshore), solar PV, concentrated solar power, sustainable bioenergy, geothermal, ocean and tidal energy, renewable hydrogen, as well as other sustainable energies and technologies, and therefore reaffirms their commitments to achieve a clean energy transition to meet net zero emissions, in line with the Parties’ commitments under the Paris Agreement.
For that purpose, pursuant to the Chapter 17 (Economic Cooperation and Capacity Building), by means of a dedicated forum, both parties shall cooperate in assisting the other Party to achieve their clean energy transition goal, including in the forms of technical assistance, exchange of best practices, policy support and dialogue or other forms of development cooperation to be further agreed, as well as exchange of views and information regarding transfer of technology.
The Parties shall facilitate existing and future investments in the territories of the other party that enable the expansion of access to clean and reliable energy, and to build and upgrade reliable, resilient power infrastructure including transmission and smart grids, without prejudice to relevant requirements in their law.
Upon request of one Party, the Parties shall hold technical consultations on relevant requirements in their laws which may hamper existing or future investments in renewable and clean energy, as well as power infrastructure of investors of one of the requesting Party. 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. If the Parties cannot resolve the matter, the requesting Party may suspend in full or in part the implementation of the cooperation provided for by paragraph 2 of this Article.
Article ARTICLE 14.12
Support measures in trade and investment in renewable energy production
With respect to financial support for the production of electricity from renewable sources, where available, each Party shall:
ensure that it is granted in a transparent and non-discriminatory manner;
clearly define the technical specifications which are to be met by renewable energy equipment and systems in order to benefit from the support; and
ensure that it is designed so as to maximise the integration of electricity from renewable sources in the electricity market of that Party12.
Article ARTICLE 14.13
Cooperation on raw materials
The Parties shall, as appropriate, in accordance with chapter 17 (Economic Cooperation and Capacity Building), cooperate in the area of raw materials value-chains with a view to, inter alia:
facilitating trade and investment linkages to ensure the establishment of well-functioning, sustainable and resilient raw materials supply chains;
promoting responsible business conduct in accordance with relevant international standards that have been endorsed or are supported by the Parties, and working jointly towards adoption of such international standards in their supply chains- including those governing environmental, social, and governance (ESG) aspects- with the aim of encouraging investments and value addition in their respective economies.
In order to promote trade and investment linkages, the Parties will facilitate business to business networking that can promote investment opportunities and facilitate integration of raw materials value chains.
Upon request of one Party, the Parties shall hold technical consultations on relevant requirements in their laws which may hamper existing or future investments along the raw materials value chains, as well as trade or investment linkages. 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. If the Parties cannot resolve the matter, the requesting Party may suspend in full or in part the implementation of the cooperation provided in this Article.
Recognising that research, development and innovation are key elements to further develop efficiency, sustainability and competitiveness of the raw material value chains, the Parties agree to cooperate as appropriate, inter alia, in:
facilitating, such as through joint initiatives, the research, development, innovation and dissemination of environmentally sound and cost-effective technologies, processes and practices across the raw materials value chains, including, by identifying suitable solutions for the effective implementation of this Chapter such as promoting a centre of excellence for sustainable raw materials based on the mutual appreciation of the Parties of progress made towards the adoption of international standards, including those governing environmental, social, and governance (ESG) considerations in their supply chain;
strengthening capacity building in the context of research, development and innovation initiatives;
identification of areas of common interest for cooperation on research, development, and innovation activities covering the entire raw materials value chain, including cutting-edge technologies, smart mining and digital mines; or
facilitate exchanging of best practices on mining and processing licences, permitting and procedures.
Recognising their shared commitment to responsible and sustainable production and sourcing of raw materials and their mutual interest to facilitate the integration of raw materials value chains, the Parties agree to cooperate on any relevant issue of mutual interest, such as:
responsible mining practices and raw materials value chains sustainability, including the contribution of the raw materials value chains to the fulfilment of the UN Sustainable Development Goals; and ensuring that both Parties foster capacity building and technology development to effectively achieve these objectives;
effective and efficient implementation of environmental and social impact assessments and standards to underpin the relevant permitting and licensing processes in the area of raw materials; or
environmental, social and governance standards, including safety standards, along the raw materials value chain and enforcement of the regulatory frameworks, to foster the application and improvement of best available technologies and capacity building efforts while ensuring that domestic industries are not unduly burdened.
To implement the cooperation provided for in this Article and in accordance with chapter 17 (Economic Cooperation and Capacity Building), Parties may decide to designate a dedicated forum for discussion, or undertake any joint initiatives aimed at strengthening sustainable value chains, experience-sharing or identifying best practices in common areas of interest.
Article ARTICLE 14.14
Export and domestic pricing
Except for export duties, taxes or other charges that are permissible under paragraph 2 of Article
2.6 [Export duties, taxes or other charges] of Chapter 2 (National treatment and market access for goods], a Party shall not impose a higher price for its exports of raw materials to the other Party than the price charged for such raw materials when destined for the domestic market, by means of any measure such as licenses or minimum export pricing requirements.
If a Party regulates the price of the supply of raw materials to a non- household customer in its market, it may do so only to achieve a public policy objective. Such regulated price shall be based on objective, clearly defined, transparent and non-discriminatory criteria, it shall be proportionate to the public policy objective pursued and made publicly available. Upon request of the other Party, the Party that has introduced or maintains a regulated price shall provide any further information.
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 15
TRADE AND SUSTAINABLE GROWTH AND DEVELOPMENT
THE PARTIES,
DESIRING to maximise synergies between the opportunities brought by this Agreement for enhancing sustainability and growth and to seize its full potential to contribute to the strengthening and expansion of their bilateral trade and investment relations in a sustainable manner;
SHARING the view that this Agreement presents unique opportunities to enhance their partnership and work together in responding to global challenges;
CONCURRING on the importance of promoting trade and sustainable development in a mutually supportive manner;
ACKNOWLEDGING the differences in their levels of development and EMPHASISING their shared objective of further integrating sustainable development in the fostering of their trade and investment relations;
RECALLING their commitment to implement this Agreement in a manner that contributes to inclusive economic growth, social progress, green transition and environmental protection;
RECOGNIZING the need for joint action to address global sustainability challenges such as climate change and biodiversity loss and pollution, as well as ensuring efforts to eradicate poverty, food insecurity, and inequality;
NOTING the importance of enhancing the resilience and integration of international supply chains, and mindful of the opportunities for SMEs, smallholders and other relevant stakeholders on both sides;
UNDERLINING that it is critical to ensure an open, transparent and rules-based international trade/trading system as well as STRESSING their determination to work together so that their trade and investment relationship enhances sustainable development;
RECALLING the importance of trade for raising standards of living and promoting job creation and decent work, and allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development;
REAFFIRMING their respective commitments under multilateral instruments and agreements such as the ILO Constitution and the fundamental ILO Conventions, the Paris Agreement, the United Nations Framework Convention on Climate Change (UNFCCC), and the Convention on Biological Diversity (CBD);
SEEKING to protect and preserve the environment, to realise decent work for all, and to enhance the means for doing so in a manner consistent with their international obligations and building on their respective growth and development strategies;
AGREE as follows:
PART A
TRADE AND SUSTAINABLE DEVELOPMENT
Article ARTICLE 15.1
Context, objectives and scope
The Parties recall the Agenda 21 and the Rio Declaration on Environment and Development adopted at the United Nations ("UN") Conference on Environment and Development held in Rio de Janeiro on 3 to 14 June 1992, the Johannesburg Plan of Implementation of the World Summit on Sustainable Development of 2002, the International Labour Organisation ("ILO") Declaration on Social Justice for a Fair Globalization, , adopted by the International Labour Conference ("ILC") at its 97th session held in Geneva on 10 June 2008 ("ILO Declaration on Social Justice for a Fair Globalization") and as amended in 2022, the Outcome Document of the UN Conference on Sustainable Development of 2012 entitled "The Future We Want", adopted by the UN General Assembly Resolution 66/288 on 27 July 2012, and the outcome document entitled “Transforming Our World: the 2030 Agenda for Sustainable Development” and its Sustainable Development Goals ("2030 Agenda"), adopted by the UN General Assembly Resolution 70/1 on 25 September 2015.
The Parties affirm their commitment to pursue sustainable development, which encompasses three dimensions: economic development, social development and environmental protection, that are inter-dependent and mutually reinforcing. The Parties shall promote the development of international trade and investment including in their bilateral relationship in such a way as to contribute to the objective of sustainable development. The Parties shall encourage greater policy coherence between trade policies, on the one hand, and economic, social, and environmental policies on the other.
In light of the above, except as otherwise provided in this Chapter, this Chapter covers trade and investment-related aspects of sustainable development in contributing to the implementation of the 2030 Agenda and its Sustainable Development Goals.
The Parties agree on the importance of enhanced dialogue and cooperation as an approach for effective implementation of this Chapter in order to achieve sustainable
development in trade and to improve their trade relationship in a sustainable manner. The Parties emphasize that the implementation of this Chapter should not be used as protectionist trade measures, and be consistent with the Parties’ international obligations under the World Trade Organization and other relevant international agreements to which the Parties are a party.
The Parties recall that that with a view to achieving the purpose of the Paris Agreement, they are to undertake and communicate ambitious efforts, which will represent a progression over time and reflect their highest possible ambition. They also recall that the Paris Agreement will be implemented to reflect equity and the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances. They stress the importance of this as part of their actions to address and tackle climate change as a key element to achieve the objective of sustainable development, as reflected in their respective growth and development strategies, policies and priorities.
Article ARTICLE 15.2
Right to regulate and levels of protection
The Parties recognise the right of each Party to determine its sustainable development objectives, strategies, policies and priorities, to establish its own levels of domestic environmental and social protection as it deems appropriate and to adopt or modify accordingly its relevant laws and policies, consistently with internationally recognised standards and agreements, to which it is a party.
Each Party shall strive to ensure that its relevant laws and policies provide for and encourage high levels of domestic protection in the environmental and social areas and shall strive to continue to improve those levels, laws and policies.
Article ARTICLE 15.3
Upholding levels of protection
As sustainable development encompasses the three dimensions of economic development, social development and environmental protection, the Parties stress that weakening the levels of protection in the environmental or social areas is detrimental to the objectives of this Chapter. Accordingly, a Party shall not weaken the levels of protection afforded in domestic environmental or labour law in order to encourage trade or investment.
A Party shall not waive or derogate from, or offer to waive or derogate from its environmental or labour laws, in order to encourage trade or investment.
A Party shall not, through a sustained or recurring course of action or inaction, fail to effectively enforce its environmental or labour laws in a manner affecting trade or investment between the Parties.
The Parties recognise the right of each Party to exercise reasonable discretion and to make bona fide decisions with regard to the allocation of enforcement resources in accordance with priorities for enforcement of its environmental and labour laws provided that the exercise of that discretion is not inconsistent with its obligations under this Chapter.
Article ARTICLE 15.4
Trade and labour
The Parties recognise the importance of full and productive employment and decent work for all, in particular as a response to globalisation and reaffirm their commitment to promote the development of bilateral trade in a way that is conducive to these objectives, including for women and young people.
In accordance with their obligations deriving from ILO membership1 and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted by the International Labour Conference at its 86th Session in Geneva on 18 June 1998 ("ILO Declaration on Fundamental Principles and Rights at Work"), as amended at its 110th Session in 2022, each Party shall respect, promote and effectively implement the fundamental principles and rights at work, as defined in the fundamental ILO Conventions, which are:
freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced or compulsory labour;
the effective abolition of child labour;
the elimination of discrimination in respect of employment and occupation; and
a safe and healthy working environment.
Each Party shall effectively implement the ILO Conventions and Protocols ratified by Indonesia and by the Member States of the European Union respectively.
1 For the European Union, ''ILO membership'' means the ILO membership of the Member States of the European Union.
Each Party shall remain a party, in good faith, to the fundamental ILO Conventions ratified by Indonesia and by the Member States of the European Union respectively.
Each Party shall make continued and sustained efforts to ratify the fundamental ILO Conventions to which they are not yet party.
Recalling that the elimination of forced labour is among the objectives of the Agenda 2030, the Parties underline the importance of ratification and effective implementation of the Protocol of 2014 to the Forced Labour Convention.
The Parties shall consult and cooperate, as appropriate, on trade-related labour issues of mutual interest, such as the inter-linkages between trade and full and productive employment, labour market adjustment, core labour standards, social protection, social inclusion, social dialogue and gender equality. This cooperation may be conducted bilaterally, regionally and in international fora. The Parties shall regularly exchange at the meetings of the Specialised Committee on Trade and Sustainable Growth in the Trade and Sustainable Growth and Development configuration as appropriate, in other occasions, information and experiences regarding the implementation of multilateral labour conventions that each Party has respectively ratified as well as information on their respective situations with regard to the ratification of ILO Conventions or Protocols that are classified as up-to-date by the ILO to which they are not yet party.
Recalling the ILO Declaration on Social Justice for a Fair Globalisation of 2008, as amended in 2022, the Parties recognise that the violation of fundamental principles and rights at work cannot be invoked or otherwise used as a legitimate comparative advantage and that labour standards should not be used for protectionist trade purposes.
Each Party shall promote decent work as expressed in the Declaration on Social Justice for a Fair Globalization of 2008 adopted by the International Labour Conference at its 97th Session, as amended in 2022, in particular with regard to:
decent working conditions for all, with regard to, inter alia, wages and earnings, working hours and other conditions of work;
non-discrimination in respect of working conditions, including for migrant workers.
Each Party shall, consistent with relevant ILO Conventions to which it is a party, and taking into account related ILO Recommendations:
adopt and implement measures and policies regarding occupational health and safety, including the prevention of occupational injury or illness and compensation in case of such injury or illness; and
maintain an effective labour inspection system for the enforcement of its labour provisions.