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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


Ministries at odds over market protection
The Trade Ministry and Industry Ministry are at odds on how to protect the domestic market from a projected influx of imported goods as the global economic slowdown cuts demand, resulting in massive excess in supply in the international market.
RI, Malaysia sign investment and trade agreement
Indonesia and Malaysia had signed here on Wednesday the first Joint Investment and Trade Committee (JICT) agreement to improve trade and investment between the two countries.
Indonesia, Turkey take first step toward FTA
Indonesia and Turkey have pledged to enhance their economic partnership, introducing a plan to formulate a comprehensive trade and economic partnership — an initial step toward a free trade agreement.
Planned bilateral deal to boost Canadian investment in RI
Canada and Indonesia are currently in talks to ink a bilateral agreement that will help protect the investments of Canadian companies in Indonesia, as well as promote Indonesia’s potential to Canadian businesses.
RI, India to finalize talks on economic cooperation accord in August
Indonesia and India are expected to finalize talks for conclusion of a comprehensive economic cooperation agreement in August
Mari wants more diversified trade with Australia
Indonesian Trade Minister Mari Pangestu called on Indonesian and Australia business people to try to diversify the type of goods and services exchanged between the two countries as their two governments are exploring to establish a free trade agreement.
FTA with EFTA states would benefit Indonesia: Etter
A free trade agreement with the European Free Trade Association would be of benefit to Indonesia, Switzerland’s trade negotiator Ambassador Christian Etter says.
US and Indonesia announce steps to deepen trade and investment relations
United States Trade Representative Susan C. Schwab and Indonesia’s Minister of Trade Mari Pangestu today agreed to formally establish working groups intended to deepen US-Indonesia economic relations in four key areas: intellectual property rights, agricultural and industrial goods, services and investment.
Toward a US-Indonesia free trade agreement
A potential bilateral Free Trade Agreement (FTA) between the United States and Indonesia is the subject of an upcoming study, “Toward a US-Indonesia Free Trade Agreement”, by Gary Hufbauer and Sjamsu Rahardja. Hufbauer and David Katz of the US Trade Representative discussed the potential economic benefits an FTA would mean for both countries, areas that would need to be addressed to successfully conclude an FTA, as well as political prospects for such an agreement.
US interest: Indonesia
Indonesia and the US are exploring the possibility of entering into a Free Trade Agreement (FTA).