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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


Canada-Indonesia free trade pact reaches final stage, ready to be signed
Free Trade Agreement (FTA) between Indonesia and Canada has been finalized and is ready for signing. Canadian Ambassador Jess Dutton announced that after a legal review, the agreement will soon undergo ratification by both countries with full implementation expected in 2026.
Optimistic I-EAEU FTA talks will conclude this year: minister
Coordinating Minister for Economic Affairs Airlangga Hartarto expressed optimism that the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA), will be finalized this year, as most key issues have been resolved and the agreement is in its finalization stage.
Indonesia, Chile mutually support regional trade bloc accession
Indonesia and Chile are mutually supporting each other’s accession to major regional trade agreements, with Indonesia backing Chile’s bid for RCEP membership and Chile supporting Indonesia’s entry into the CPTPP.
Indonesia to evaluate CEPA with Australia: Minister Hartarto
Indonesia is set to evaluate its Comprehensive Economic Partnership Agreement (CEPA) with Australia, signed in 2020, as part of the mandatory five-year review. The evaluation will focus on adding strategic cooperation in critical minerals, such as lithium and manganese, which are important for Indonesia’s electric vehicle ecosystem.
Trump blinked in trade war with China. Can South-east Asia get a break, too?
US President Donald Trump significantly reduced tariffs on Chinese goods signaling a shift toward renewed trade negotiations with China. While some ASEAN nations are engaging in negotiations and considering concessions, uncertainty remains over the US’s long-term trade strategy and its pressure to limit economic ties with China.
Indonesia committed to promoting ATIGA Upgrade
Indonesia’s Deputy Trade Minister highlighted the new chapters on environment, circular economy, and MSMEs on the ATIGA Upgrade. Negotiations are nearly complete and aim to finish by September for signing at the 47th ASEAN Summit.
As US tariff looms, Indonesia now closer to joining Mexico’s CPTPP trade club
Having officially applied last September, Indonesia expects CPTPP members to discuss its accession later this year, with support from countries like Malaysia, Singapore, and the UK. Joining the CPTPP would grant Indonesia duty-free access to nearly 99% of tariff lines among members, expanding trade opportunities.
Prabowo, Russia’s Manturov discuss Indonesia-Eurasian FTA progress
Indonesia’s President Prabowo Subianto and Russia’s First Deputy Prime Minister Denis Manturov discussed advancing a free trade agreement with Eurasian countries, aiming for finalization during Prabowo’s visit to St. Petersburg later this year.
Prabowo to visit Russia in June, eyes Eurasian bloc trade pact signing
President Prabowo Subianto of Indonesia is set to make his inaugural state visit to Russia in June, with the signing of a free trade agreement with the Eurasian Economic Union (EAEU) as a key focus. Under Prabowo’s leadership, Indonesia is strengthening its relationship with Moscow, particularly through its recent entry into the BRICS grouping, which aims to counter Western influence.
Agriculture key focus in early India-US trade talks
India and the US are actively discussing a trade deal, with a key focus on agricultural produce. Despite sensitivities surrounding agricultural lobbies, both countries see potential for increased market access through tariff reductions and the removal of non-tariff barriers. The discussions emphasize "complementarities," aiming to avoid harming domestic farming communities.