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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, Denmark put controversy aside to sign investment agreement
In an effort to put last year’s cartoon controversy behind them, Indonesia and Denmark have reached an agreement on investment promotion and protection.
US mulls investment accord with Indonesia ahead of FTA
The United States is looking into signing an investment treaty with Indonesia this year to set the pace for a larger free trade pact that could boost bilateral trade by up to 40 percent.
US, Indonesia eye future free trade agreement
The United States and Indonesia launched talks on Tuesday to curb illegal logging that threatens the Southeast Asian country’s rain forests and advanced other initiatives that could lead to a free trade pact, top trade officials from both countries said.
RI seeks closer trade ties with US
After four years of stagnant trade relations, the government plans to start intensifying talks with the United States and support a joint-study group on a possible free trade agreement (FTA) with the country, a minister says.
How to beat US trade barriers
The transshipment issue — the illicit movement of shoes, shrimp and garments that have been repackaged, re-labeled and re-exported after being shipped to Indonesia — has cast a shadow over recently warmed US-Indonesian bilateral relations and threaten to damage the Southeast Asian country’s chances of a full free-trade agreement (FTA) with the US.
Indonesia, China find love
China’s sustained growth will depend on how well it manages its political and trade relationships. Acquiring concessions and investing directly in natural-resource-based projects in Indonesia makes a great deal of sense for China.
Indonesia, India to boost economic relationship
Indonesia and India have agreed to set up a joint study group to boost the bilateral economic relationship which remained far from its huge potential, Indonesian Minister of Trade Mari Elka Pangestu has said.
India and Indonesia seek to boost bilateral trade
India and Indonesia have decided to set up a joint study group to examine the possibility of a Comprehensive Economic Partnership Agreement.
’Indonesia set for a fall in free trade era’
Indonesia will not be able to take advantage of increasing world trade liberalization because many stakeholders here are not even aware it is going on, an official says.
Indonesia happy with CAFTA with China, sees no need for FTA
Indonesia will not seek to sign bilateral agreements with China outside the China-Asean Free Trade Area (CAFTA) scheme when President Susilo Bambang Yudhoyono visits that country later this week.