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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


Indonesia, Canada resolve all ICA-CEPA negotiation issues
Indonesia and Canada have completed negotiations for a new trade agreement. The agreement aims to boost trade, investment, and economic cooperation between the two countries.
Indonesia-Canada trade pact negotiations enter final stage
The negotiations of the trade deal between Indonesia and Canada have entered the final stage as the two economies wish to substantially conclude the agreement later this week.
Indonesia-Peru speed up to complete comprehensive economic agreement
Indonesia and Peru are working to finalize a free trade agreement. The two countries held talks in September to discuss trade, investment, and other economic issues. They aim to increase trade volume between them and have agreed on a visa-free agreement for diplomatic and official passport holders.
I-GCC FTA first round negotiations run well: Trade Ministry
The first round of negotiations for the Indonesia-Gulf Cooperation Council FTA (I-GCC FTA) was held in Jakarta. Both parties agreed to continue negotiations and aim to finalize the agreement within 24 months.
Indonesia ready to negotiate free trade agreement with Pakistan: Envoy
Rahmat Hindiarta Kusuma, Charge d’Affaires of the Indonesian Embassy, said Indonesia is ready to negotiate a free trade agreement (FTA) with Pakistan.
GCC, Indonesia begin free trade agreement negotiations
The GCC and Indonesia are launching negotiations for a free trade agreement. The talks aim to reduce tariffs, simplify trade procedures, and promote investment. The agreement is expected to strengthen economic ties between the two regions.
Indonesia eyes export growth with RoK via IK-CEPA
The Indonesian Government is aiming to expand exports to the Republic of Korea (RoK) through the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA), which has been in effect for the past year.
​Indonesia, Japan intensify billateral trade
Indonesia’s Trade Minister Zulkifli Hasan and Japan’s Foreign Minister Yoko Kamikawa signed the Protocol of Amendments to the Indonesia-Japan Economic Partnership Agreement (IJEPA) in Jakarta on August 8.
Stop burdening people at the end of the term, Mr. President!
A total of 37 organizations and 29 people conveyed their urge to President Joko Widodo via open letter to stop negotiations between Indonesia - European Union Comprehensive Economic Partnership Agreement (I-EU CEPA). This demand was conveyed after Indonesia completed the 19th round of negotiations on 1-5 July 2024 behind closed doors.