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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


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.
S. Korea, Indonesia discuss ways to improve bilateral free trade deal
South Korea and Indonesia held their first round of talks to discuss measures to improve their bilateral free trade agreement and review its progress.
Indonesia wants to wrap up trade pact talks with EU before elections
A senior minister recently said that Indonesia should substantially wrap up the negotiations of its trade pact with the European Union (EU) before the elections.
Indonesia, Canada agree to complete ICA-CEPA by late 2024: Minister
Indonesia and Canada agreed on a target to complete the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) negotiations by the end of 2024 to further increase trade between the two countries.
Exclusive: US, Indonesia to discuss potential for deal on EV minerals
Indonesia, which has the world’s biggest nickel ore reserves, in September asked the United States to begin discussions for a trade deal for critical minerals so that exports from the Southeast Asian country can be covered under the US Inflation Reduction Act (IRA).
US senators oppose Indonesia FTA that paves way for nickel subsidies
US lawmakers have expressed concern about signing a limited free trade agreement with Indonesia, as the country’s mining and refining industry is dominated by companies from China.
Indonesia seeks free trade talks with Saudi Arabia, GCC
Indonesia hopes to start talks on a free trade pact with Saudi Arabia and the Gulf Cooperation Council, a minister has said after the Indonesian president’s meeting with Crown Prince Mohammed bin Salman in Riyadh.
Jokowi, Saudi Crown Prince MBS Discuss ISA-CEPA and RI-GCC, Says Trade Minister
Zulhas said one of the topics discussed at the meeting was the formation of the negotiating team for the Indonesia-Saudi Arabia Comprehensive Economic Partnership Agreement (ISA-CEPA).
Mercosur-Indonesia trade pact talks delayed as bloc’s deal with EU stalls
Indonesia’s trade deal with the Mercosur bloc of Argentina, Brazil, Paraguay, and Uruguay is facing a delay, as negotiations will likely start in 2024, only after the group takes care of its long-overdue pact with the European Union (EU).
Jokowi, PM Trudeau seek to complete ICA-CEPA by late 2024
President Joko Widodo (Jokowi) and Canadian Prime Minister Justin Trudeau agreed to complete the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) negotiations by the end of 2024.