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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


Timely evolution of Indonesian-Chilean trade relations
SHARES Indonesia and Chile have entered a new chapter of bilateral relations with the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA), which entered into force on Aug. 10.
The Ratification of Indonesia-Australia trade agreement is targeted for completion by the end of this year
the text and documents related the Indonesia-Australia CEPA cooperation (IA-CEPA) had been submitted by the President to the Speaker of the Parliament (DPR) since 9 August 2019.
Seed patent protection in FTA castrated the farmers’ rights
The government of Indonesian is aggressively increasing the negotiation of international trade agreements governing seed patents for corporations.
Setting sights on ‘free trade’ Africa
Indonesia has caught the African fever, but with AfCFTA, it can do a lot more and faster in tapping the growing economic and business opportunities on offer
VP targets free trade talks to conclude by 2019-end
Vice President Jusuf Kalla has set a target to finalize talks on the free trade agreement between Indonesia and countries or regions, with potential market, by the end of the year.
IE-CEPA ratification expected to be completed in 2020: Deputy Minister
After a seven-year negotiation, Indonesia and the four EFTA countries — Switzerland, Iceland, Norway and Liechtenstein — signed the IE-CEPA last December.
Indonesian delegation to arrive soon for FTA talks
Indonesian Ambassador to Pakistan stressed the need for enhancing bilateral relations with Pakistan, particularly in the fields of trade, culture, education and people-to-people contacts.
Indonesia eyes trade partnership with Latin America through Argentina
The Indonesian government is seeking better market access to the Latin American region through the establishment of a working group with Argentina, a member state of South American economic bloc Mercosur.
Switzerland expedites Indonesia-EFTA CEPA ratification
The Swiss Federal Council issued an official document related to the CEPA between Indonesia and the European Free Trade Association (EFTA) member states and proposed it to the Swiss Parliament for endorsement.
Old agreements must be terminated to bring life to investment
Indonesia and Australia should agree to terminate the BIT upon entry into force of the IA-CEPA regardless of whether it ultimately includes an ISDS mechanism.