Key Points of the Energy and Natural Resources Agreement under the IEU CEPA

Indonesia and the European Union have agreed on a number of strategic cooperation points in the energy and raw materials sectors within the framework of the Indonesia–European Union Comprehensive Economic Partnership Agreement (“I–EU CEPA”). The agreement is aimed at encouraging investment, supporting the clean energy transition, and strengthening the sustainable management of natural resources, while upholding the sovereignty of each party.

“The objective of this chapter is to advance the clean energy transition and to strengthen sustainability in the natural resources sector,” said Antonius A. Budiman, Head of the European Affairs Sub-Directorate at the Ministry of Trade.

In the energy sector, cooperation is focused on increasing investment in renewable energy in Indonesia. The types of clean energy explicitly agreed upon include solar, wind, biomass, and hydrogen. Through the strengthening of the investment landscape, the I–EU CEPA is intended to open broader opportunities for the development of renewable energy projects, with fair and transparent access to energy infrastructure. In the context of renewable energy, the I–EU CEPA also includes the recognition of palm oil as one of the sources of renewable energy.

The agreement further affirms that Indonesia and the European Union retain full sovereignty in regulating the exploration and management of their respective natural resources. This principle serves as the foundation for cooperation in the energy sector, including in the formulation of national policies and the governance of supporting infrastructure. In the raw materials and minerals sector, the I–EU CEPA encourages the strengthening of downstream sector development through more transparent cooperation.