EU and Indonesia Comprehensive Economic Partnership Agreement annexes

The European Commission has submitted ANNEX 4 to the Proposal for a Council Decision on signing the Comprehensive Economic Partnership Agreement (CEPA) between the European Union and Indonesia.

• Main action: The Annexes set out the Union’s and Indonesia’s sector-by-sector schedules of commitments on cross-border supply of services, specific commitments on investment liberalisation, temporary presence of natural persons, MFN exemptions, and guidelines for mutual recognition of professional qualifications; they record explicit sectoral reservations (equity caps, nationality/residency requirements, licensing, economic needs tests) and cross-cutting rules such as data‑localisation/DC‑DRC for financial services and tax/ownership thresholds.
• Background and key details:
  • Indonesia: minimum investment thresholds (e.g., IDR 10 billion total investment and paid-up capital), 20% withholding tax on certain non-resident income, sectoral joint‑venture and foreign‑equity caps (varies by sector), and explicit requirements for research permits, accreditation, licences and local partnerships (BRIN, KAN, ministries); financial firms may be required to locate data centers / disaster recovery centers (DC/DRC) in Indonesian territory, and several transport, mining and energy activities have ownership or divestment rules.
  • Union: Annexes record differentiated commitments by Member State, list detailed national reservations (real estate, legal representation, health, insurance, transport), and include an MFN exemptions annex clarifying reciprocal/regional arrangements and bilateral exceptions.

Context: this is an official EU Commission annex to COM(2026)341 and represents the formal text of negotiated schedules and reservations rather than an analysis or press summary.