bilaterals.org logo
bilaterals.org logo

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


Canada, Indonesia agree to boost economic cooperation
Canada and Indonesia recently agreed to intensify economic cooperation, especially on trade, investment and energy transition. Indonesian foreign affairs minister Retno Marsudi and Canadian counterpart Melanie Joly signed the Indonesia-Canada Plan of Action for 2022-2025 during the latter’s visit to Indonesia to take ahead the cooperation initiatives.
IUAE-CEPA fourth round results in substantial agreements
The fourth round of IUAE-CEPA focused on resolving issues that still needed further discussion such as trade in goods and services, provisions of origin of goods, as well as legal and institutional issues.
Indonesia, Sri Lanka agree to push for PTA negotiations
Indonesian Ambassador to Sri Lanka and Sri Lanka Trade Minister have agreed to push for immediate negotiations on Preferential Trade Agreement between the two countries.
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.