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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 warns of ‘challenging’ trade talks with Canada
Canada is preparing to formally launch bilateral trade negotiations later this year with Indonesia, but already plans to include gender, environmental and labour provisions in a deal are being described as a “challenge.”
Canada to begin negotiations with Indonesia on a Comprehensive Economic Partnership Agreement
Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, and Muhammad Lutfi, Indonesia’s Minister of Trade, announced that Canada and Indonesia will begin negotiations on a Comprehensive Economic Partnership Agreement (CEPA).
Bangladesh, Indonesia for early signing of PTA
Bangladesh and Indonesia on Thursday stressed early signing of Preferential Trade Agreement (PTA) within the ambit of which potential export items from both countries would be allowed to enter duty free, reports UNB.
Indonesia, Iran aim to finalize preferential trade agreement
Indonesia and Iran highlighted the need to finalize a trade agreement between the two countries during the visit of Iranian Foreign Minister Mohammad Javad Zarif to Jakarta on Monday.
How Indonesia plans to benefit from EFTA trade deal
The House of Representatives has recently approved a draft trade deal with the four-member EFTA that is expected to facilitate foreign investment and liberalize trade in goods and services, particularly commodities such as palm oil and raw metals.
House approves Indonesia-EFTA trade deal
Indonesia is one short step away from having its first trade agreement with European countries after legislators approved a bill over a deal between Indonesia and the European Free Trade Association (EFTA).
Four key points from the ratification of the Indonesia-Singapore bilateral investment treaty
Besides protection and dispute settlement, the BIT also includes several key changes in terms of application and restriction.
Bilateral investment treaty between Singapore and Indonesia comes into force
A bilateral investment treaty between Singapore and Indonesia has come into force after being ratified in a virtual meeting on March 9.
Swiss free trade deal with Indonesia narrowly survives referendum
Voters in Switzerland have given the green light to a free trade deal with Indonesia with a small majority of 51.6%.
Palm oil row fuels Swiss vote on Indonesia trade deal
Switzerland votes Sunday on a free trade deal with Indonesia but the agreement, which opens up a vast potential market, could slip up over the issue of palm oil imports.