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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 1, Newmont 0
US firm Newmont Mining has withdrawn its arbitration claim against Indonesia
Revamping bilateral treaties
Indonesia’s intention to end bilateral investment treaties (BIT) has been questioned again and again, most recently in an article published on July 1 in the Financial Times, writes Indonesia’s Ambassador to Belgium in a Jakarta Post opinion piece.
Indonesia should withdraw from the ICSID!
If there is dispute against the government, investors, be they foreign or local, they should bring their cases to the Indonesian judiciary or other available national dispute mechanisms.
After South Africa, Indonesia takes a brave decision to terminate its BIT with the Netherlands
Last week, the Indonesian government announced that it will terminate its Bilateral Investment Treaty (BIT) with the Netherlands, joining the growing number of countries concerned about the excessive corporate rights enshrined in investment agreements.
Boediono meets with Netherlands
Indonesian VP Boediono met with Dutch PM Mark Rutte on Sunday and explained that Indonesia’s decision not to extend its bilateral investment treaty with the Netherlands was common to all countries with bilateral investment agreements with Indonesia that would soon end.
Indonesia indicates intention to terminate all of its bilateral investment treaties?
According to the Netherlands Embassy in Jakarta, Indonesia has informed the Netherlands that it has decided to terminate the Bilateral Investment Treaty between the two nations from 1 July 2015. The Embassy also states that “the Indonesian Government has mentioned it intends to terminate all of its 67 bilateral investment treaties“.
RI halts cooperation with OZ, mulls more
Jakarta has upped the ante in the spying row with Canberra by officially suspending cooperation on preventive measures against boat people and mulling the suspension of free trade negotiations with its southern neighbor.
US-ASEAN businessmen lobby Indonesia on TPP
US businessmen grouped under the United States-ASEAN Business Council are seeking ways to access the Southeast Asian market, which its population of 620 million, through a Trans-Pacific Partnership.
Indonesia to kick off CEPA talks with Chile
Indonesia has agreed to begin talks on a comprehensive economic partnership agreement (CEPA) with Chile, hoping to use the nation as a trade hub in South America.
South Korea and Indonesia plan to ratify trade pact
A major agreement aimed at boosting trade and investment ties between South Korea and Indonesia may be ratified before the end of this year, industry minister M.S. Hidayat said in Jakarta on Friday.