bilaterals.org logo
bilaterals.org logo

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


Are the sustainability criteria in the Swiss trade deal with Indonesia toothless?
A free trade agreement with Indonesia has sparked backlash and Switzerland’s first national referendum on palm oil imports. On the eve of the vote to take place March 7, SWI swissinfo.ch fact checks claims on sustainability.
PBI-Switzerland notes referendum on free trade deal with Indonesia as Canada launches consultation on similar agreement
Human rights defenders on the ground have been drawing attention for many years to the negative consequences of palm oil cultivation for small farmers, indigenous people and the environment.
Canada explores free trade agreement with Indonesia
Canada is exploring the merits of a trade agreement with Indonesia. International Trade Minister Mary Ng announced Jan. 11 that Canada was beginning public consultations.
Indonesia expects to ratify trade deal with EFTA soon to attract new investment
The Indonesian government is expecting to finish the ratification of the comprehensive economic partnership agreement with EFTA early next year in a bid to attract investment from those countries amid the COVID-19 crisis.
Indonesia pursues trade deals with African, Latin American, Middle Eastern countries
The Indonesian government is pursuing a series of trade deals with non-traditional partners in Africa, Latin America and the Middle East in an effort to navigate international trade during and after the COVID-19 pandemic.
Either Biden or Trump, Indonesia wins
Indonesia stands to benefit from trade with the US, regardless of who wins the US 2020 presidential election, as the total exports and imports to and from the world’s largest economy expected to double to $60 billion in the next two years.
RI-South Korea trade deal sign of things to come
Indonesia is set to sign a trade agreement with South Korea and seeks ensure that a larger deal at the regional level will also be inked, as the country focuses on increasing overseas market access in the hopes of lifting its economy out of the mire of the pandemic.
Indonesia keen to finalize preferential trade agreement with Bangladesh
Indonesia has shown its keen interest to finalize the preferential trade agreement with Bangladesh, with an aim to boost bilateral trade between the two countries.
Indonesia: IA-CEPA - Impact on data localization and offshore data transfers in Indonesia
This article focuses on the treatment of electronic systems and data, such as data localization and personal data protection In Indonesia due to the IA-CEPA.
New Indonesian envoy to US vows to secure GSP extension, trade deal
Indonesia’s newly appointed envoy to the US has vowed to double down on the government’s economic diplomacy push to ensure the country retains its trade perks and commences negotiations of a limited trade deal with Washington.