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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, Sri Lanka launch preferential trade agreement negotiations
During the launch, both countries found the PTA to become a key building block towards a free trade agreement.
Indonesia stresses on active, fair participation of all IPEF partners
Indonesia emphasized active and fair participation of all Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries in implementing the cooperation framework, Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Indonesia still wants to secure EU trade pact this year
Indonesia and the European Union (EU) recently held the 17th round of negotiations on their long-awaited trade agreement in Bandung. During this round, the two parties reached a "technical conclusion" on three chapters of the pact, including sustainable food systems, technical barriers to trade, and institutional provisions.
Indonesia and EU discuss intellectual property in trade deal negotiations
Indonesia’s Ministry of Law and Human Rights discussed the intellectual property (IP) chapter during the 17th Round of Negotiations of the IEU-CEPA Working Group on Intellectual Property (WGIP).
IEU-CEPA: 17th negotiation round discusses trade barriers
Indonesia and the European Union discussed technical barriers in trade, sustainable food system cooperation, and institutional provisions during the 17th Round of Negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Environmental equity in the Indonesia-EU CEPA
The EU and Indonesia have differing approaches to incorporating sustainable development principles into trade agreements. While the EU focuses on maintaining high environmental and labor standards, it prefers to keep these standards separate from broader trade and economic considerations. In contrast, Indonesia advocates for a more balanced approach that integrates economic growth, social development, and environmental protection.
Indonesia implemented three trade agreements in 2023: Minister
The Indonesian government started implementing three international trade agreements involving the United Arab Emirates, the Association of Southeast Asian Nations, and South Korea in 2023.
Indonesia, Japan to implement amended economic partnership agreement
In recent years, Indonesia has sought several changes to the IJEPA, aiming to facilitate the access of its processed seafood, including canned tuna, to the Japanese market.
Indonesia optimistic IEAEU-FTA negotiations can be completed in 2024
Indonesia is optimistic that negotiations of the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU-FTA) can be completed in 2024 following the agreement on the Intellectual Property (IP) chapter.
Peoples’ economic sovereignty and human rights protection must be prioritized over Indonesia-EU CEPA negotiation
The Indonesian Civil Society Coalition for Economic Justice (MKE) urges the Government of Indonesia to stop free trade negotiations with the European Union by adhering to the main principles of international cooperation in accordance with the Constitution.