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


Iran, Indonesia conclude negotiations on bilateral trade agreement
The Ministry of Trade of Indonesia has announced that Jakarta and Tehran have successfully completed the final stage of negotiations on a bilateral trade agreement.
Indonesia, Vietnam aim for $15 billion trade by 2028
Indonesia and Vietnam are aiming for a $15 billion annual bilateral trade by 2028, and both nations are feeling confident about meeting this target as long as the trade barriers ease.
The struggle of small-scale fishers in Indonesia
Indonesia is a country that is particularly active and aggressive in negotiating free trade and investment agreements. The food industry, notably fisheries, is often threatened by such agreements.
Let’s speed up Indonesia-EU CEPA negotiations: Jokowi
Indonesia once again called for the conclusion of the lengthy negotiations on its trade pact with the European Union (EU). President Joko Widodo raised the subject of the long-awaited Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) when receiving a visit from Czech Prime Minister Petr Fiala.
Future free trade agreement with Indonesia creates new opportunities for Kazakhstan’s businesses
The first round of negotiations on the conclusion of a free trade agreement between the member states of the Eurasian Economic Union and Indonesia began on April 3, Kazakhstan’s Ministry of Trade and Integration reported.
Indonesia invites India to expedite PTA negotiations
Indonesian Trade Minister Zulkifli Hasan expressed his expectation that Indonesia and India can immediately begin negotiating the bilateral Preferential Trade Agreement, which has been under consideration since 2020.
Jakarta wants PTA with Dhaka by April
Jakarta is keen on signing a preferential trade agreement (PTA) with Dhaka by April this year. Sources said that the Indonesian Embassy in Dhaka has informed the Foreign Ministry regarding the issue.
Indonesia, Timor Leste Agree to establish Bilateral Investment Treaty
Indonesian President Joko "Jokowi" Widodo and Timor Leste Prime Minister Taur Matan Ruak agreed on a number of commitments. One of the commitments was related to the establishment of a bilateral investment treaty.
Without public participation, the Indonesia-EU CEPA negotiations potentially create a multidimensional crisis in Indonesia
The Indonesian CSOs assesses that the I-EU CEPA Agreement will deepen the crisis of democracy, climate and social justice for all Indonesian people. For this reason, the MKE Coalition urges the Government of Indonesia to not submitting the agreement before they can guarantee legal certainty for the fulfillment of democratic rights, guarantees for the protection of human rights, social justice, and sustainable environment.
FTAs cause major Indonesia’s exports to be overdrown, according to Indonesia business group’s research
The Indonesian Employers’ Association (Apindo) revealed that Indonesia’s export growth to partner countries has actually been slower after joining the Free Trade Agreement (FTA) which began in the early 2000s.