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Indonesia

Indonesia signed a major comprehensive FTA with Japan in 2007. In February 2012, it signed a preferential trade agreement with Pakistan which the two governments intend to turn into an FTA. But the Pakistan government has reportedly refused to start new negotiations until its concerns on the existing agreement are addressed.

Right now, Indonesia is negotiating trade deals with Australia, Chile, EFTA (European Free Trade Area), the European Union, Korea, India and Ukraine. It has also expressed an interest to join the Transpacific Partnership (TPP) and to establish a free trade zone with the Eurasian Economic Union. Since 2012, Jakarta is part of the controversial Regional Comprehensive Economic Partnership (RCEP) talks with the nine other ASEAN (Association of South-East Asian Nations) governments and their six FTA partners: Australia, China, India, Japan, New Zealand and South Korea.

As member of ASEAN, Indonesia is also party to the group’s FTAs with Australia and New Zealand, China, India, Japan and Korea, as well as the ASEAN Economic Community.

Following a growing discontent against the investor-state dispute settlement (ISDS) mechanism, whereby foreign investors can seek compensation in an arbitration tribunal if new laws or regulations negatively affect their investment potential, Indonesia decided in 2014 to phase out 67 of its bilateral investment treaties. The government has terminated 20 treaties so far and has been developing a new model BIT that would supposedly reflect a more balanced approach between the country’s right to regulate and foreign investor protection.

last update: October 2016
Photo: IGJ


Govt hopes to conclude trade deals with EU, UAE this year
Indonesia Trade Minister said that at least three trade deals were slated for completion or near completion this year as part of government efforts to diversify export markets.
FTA with Indonesia under review
A trade agreement between Pakistan and Indonesia is being negotiated to enhance trade activities and it is likely to be implemented soon, said Ambassador of Indonesia to Pakistan Adam Mulawarman Tugio.
Indonesia continues to enhance cooperation with Palestine
Right now, Indonesia is also seeking to sign a preferential trade agreement (PTA) with the Palestinian government in order to help the Palestinian people conduct trade and increase economic cooperation between the two countries.
EFTA-Indonesia Comprehensive Economic Partnership Agreement enters into force
A new free trade agreement (FTA) between EFTA and Indonesia entered into force on 1 November 2021 after the ratification of all Parties.
Indonesia’s digital economy commitments in EU and RCEP trade agreements
In recent years, Free Trade Agreements (FTAs) have started to include rules for the digital economy as a result of pressure from Big Tech. This summary analyses the most important points being negotiated by Indonesia with the European Union and RCEP.
Kenya, Indonesia bridge trade gap
With the opening of a Kenyan embassy in Jakarta, Kenya and Indonesia are seeking to enhance trade ties.
Indonesian civil society urged the Government to be cautious in taking position in Indonesia-EU CEPA negotiations related to Omnibus Law
In the process of developing negotiations, there are new policies issued by the two countries, such as the Job Creation Law (Omnibus Law) which was passed by Indonesia in 2020, and the EU New Trade Policy which was issued in February 2021, and these policies seem to have an impact on the IEU CEPA discussion.
Indonesia and UAE begin talks on trade and investment pact
Indonesia and the United Arab Emirates announced the start of negotiations for a new free trade and investment agreement, as the two modern Muslim nations seek to take newly forged ties to a new level.
Indonesian Finance Ministry endorses five international trade rules
The Indonesian Finance Ministry has endorsed five regulations aimed at boosting trade between Indonesia and Free Trade Area (FTA) partner countries.
Indonesia warns of ‘challenging’ trade talks with Canada
Canada is preparing to formally launch bilateral trade negotiations later this year with Indonesia, but already plans to include gender, environmental and labour provisions in a deal are being described as a “challenge.”