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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


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.
Between China and America? Real choices facing Indonesia
Are the RCEP and TPP really competing for members and agenda items?
RI, South Korea aim to seal CEPA at year’s end
Indonesia and South Korea have agreed to continue talks on a comprehensive economic partnership agreement (CEPA), aiming to conclude at the end of this year a deal that will help boost bilateral trade to US$100 billion by 2020.
Local firms reel under free trade deals
Indonesian firms cannot compete with lower prices offered by foreign rivals in their home market.
Trade with Africa, South America key to maintain growth, minister says
Indonesia Trade Minister Gita also said that his government was making positive progress in Comprehensive Economic Partnership Agreement (CEPA) talks with South Korea. He predicted that the free-trade agreement could be materialized by August.
Obstacles to an Indonesia-Taiwan economic partnership
More often than not, whenever a Taiwanese official pays a visit to Jakarta, there is usually one question on his mind: “Dude […] where’s my FTA?”
Indonesia gaining palm-oil sales in Pakistan, Dalda Foods says
Indonesia, the largest palm-oil producer, has been gaining market share in Pakistan and may extend its position after a free-trade agreement, or FTA, comes into effect, according to Dalda Foods Pakistan, an importer.