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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


Indonesian delegation to arrive soon for FTA talks
Indonesian Ambassador to Pakistan stressed the need for enhancing bilateral relations with Pakistan, particularly in the fields of trade, culture, education and people-to-people contacts.
Indonesia eyes trade partnership with Latin America through Argentina
The Indonesian government is seeking better market access to the Latin American region through the establishment of a working group with Argentina, a member state of South American economic bloc Mercosur.
Switzerland expedites Indonesia-EFTA CEPA ratification
The Swiss Federal Council issued an official document related to the CEPA between Indonesia and the European Free Trade Association (EFTA) member states and proposed it to the Swiss Parliament for endorsement.
Old agreements must be terminated to bring life to investment
Indonesia and Australia should agree to terminate the BIT upon entry into force of the IA-CEPA regardless of whether it ultimately includes an ISDS mechanism.
Indonesia, South Korea target to complete IK-CEPA talks this year
Indonesia and South Korea aim to complete negotiations for the Comprehensive Economic Partnership Agreement (IK-CEPA) this year to boost bilateral trade and other economic relations.
Indonesia, Malaysia send letter protesting EU palm oil curbs
The leaders of Indonesia and Malaysia sent a letter of objection to the European Union criticizing its decision to no longer consider palm oil as a green fuel and threatening the bloc’s ties with the countries.
Indonesia wins $469 mn arbitration case against Indian metal firm IMFA
Indonesia has won a $469 million arbitration case against India’s Metal Ferro and Alloys Ltd (IMFA) after nearly four years of court battles
Indonesia pushes palm oil companies to take legal action against the EU
Indonesia’s government said will encourage the country’s palm oil companies to file lawsuits against the EU if the bloc goes ahead with a plan to phase out use of the commodity in renewable transport fuel.
IEU CEPA review must be made based on the human rights, not the interest of palm oil industry
Indonesian CSOs Coalition for Economic Justice urges the government to review Indonesia - EU CEPA based on human rights and not the interests of palm oil industry.
ICSID arbitration Churchill v Republic of Indonesia: Annulment proceedings dismissed
The annulment committee has dismissed Churchill’s application for annulment of the award for the dispute arising out of the revocation of the mining licenses that made up the East Kutai Coal Project in East Kalimantan.