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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


Indonesia, Peru to enter a free trade agreement
Indonesia and Peru agreed to step up economic cooperation during a meeting between their foreign ministers in Lima, Peru.
Indonesia, Africa have great potential to strengthen economy: Kalla
Indonesia’s Vice President Jusuf Kalla noted that Indonesia and Africa have great potential to develop and strengthen economy.
Trade Minister plans to retaliate to EU ban on CPO
Trade Minister asked for permission to retaliate to countries barring the use of Indonesian crude palm oil.
Free trade talks between Indonesia, Australia expected to complete by August
Negotiation of free trade agreements between Indonesia and Australia is expected to be completed by August of this year, Indonesian Coordinating Minister for Economic Affairs Darmin Nasution said here on Friday.
Indonesia pins hope on ASEAN-EU FTA to support SMEs, palm oil
Speaking at the 16th ASEAN Economic Ministers (AEM)-EU Trade Commissioner Consultations in Singapore on Friday, Trade Minister Enggartiasto Lukita outlined the desired impact a free trade agreement (FTA) between ASEAN and the European Union would have on small and medium enterprises (SMEs) and the palm oil industry.
Indonesia, Australia strive to complete CEPA
The Governments of Indonesia and Australia are seeking to immediately complete the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) negotiations, as they seek the grounds that hampered the negotiations.
Jakarta told to step up talks with EFTA
THE Indonesian government has been advised to accelerate its Comprehensive Economic Partnership Agreement (CEPA) negotiations with the European Free Trade Association (EFTA), which consists of four countries — Iceland, Liechtenstein, Norway and Switzerland — in order to boost investment and trade.
Activists: Palm oil must not get wider access to EU under Indonesia trade talks
Environmental activists have called for the issue of palm oil to be excluded from discussions taking place this week between the Indonesian government and a European Union trade delegation.
Everything you need to know about the CEPA trade deal but were afraid to ask
A total of 60 civil society organisations from Indonesia and Europe have signed a joint statement laying out serious concerns with the EU-Indonesia trade agreement. These behind-closed-doors trade negotiations - like CETA and TTIP - jeopardise an equitable and just future.
Indonesia turns to Latin America to diversify trade portfolio
After achieving a foreign trade surplus last year on the back of strong demand for minerals and agricultural products, Indonesia is looking to sustain growth by building ties with new markets, as well as deepening relationships with existing partners.