The EU is introducing new checks on imports of timber products from Indonesia to curb illegal logging there.
Indonesia is Asia's biggest exporter of timber to the EU and the trade is worth about 15% of its total exports. Germany, Britain, France and Italy among the major importers.
The EU will provide technical support to help Indonesia ensure that only legally harvested timber is exported.
The BBC reports environmentalists welcomed the new agreement, but said Jakarta must do much more to fight illegal loggers.