Regulatory Adjustments Post-IEU CEPA Adjust Standards

Business Actors have identified a number of regulations that need to be adjusted following the agreement of the Indonesia-European Union Comprehensive Economic Partnership Agreement (“IEU-CEPA”). The results of this identification have been submitted to the government, in line with the agreement which is currently entering the legal scrubbing stage.

“We believe that what we have conveyed to the government has been well received. We are just waiting for the details,” said Anne Patricia Sutanto, Chairwoman of the Trade Division of the Indonesian Employers Association (“Apindo”), to Hukumonline.

Anne explained that the European Union has specific standards related to export and import provisions compared to other countries. Adjustments to regulations related to Environmental, Social and Governance (“ESG”) and International Labor Organization (“ILO”) standards for domestic products for export to Europe are among the points that will be addressed following this agreement. These regulatory adjustments also need to be aligned with regional regulations.

“This is related to clean energy standards and so on. We must ensure that before it is ratified and effective, both the private sector and the government are ready. So that it is optimal,” she emphasized.