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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


Korea to speed up CEPA talks with Indonesia
Korea has decided to resume talks on signing the Comprehensive Economic Partnership Agreement with Indonesia, seeking to broaden ties with the Southeast Asian country.
Indonesia, Australia to sign trade deal in March
Indonesia is to sign a trade and investment partnership deal with Australia in March, Indonesia’s trade minister said.
Indonesia, Turkey conclude third round of CEPA talks
Indonesia and Turkey have held a third round of talks on the Comprehensive Economic Partnership Agreement (IT-CEPA) in Jakarta.
Statement of the Advocacy Team for Economic Justice in the Post-Court Verdict concerning the International Treaty Law
Indonesian Constitutional Court issued stated that parliament’s approval is needed for the signing of International Agreement which stipulated in the Constitution on the verdict.
Indonesia and Algeria step up trade and investment
Indonesia and Algeria have made a commitment to increase bilateral trade and investment.
Indonesia to sign free trade deal with EFTA countries in December
The Indonesian government has wrapped up negotiations for a free trade and investment pact with members of the four-nation European Free Trade Association, a final agreement is due to be signed in December.
Government too ambitious in seeking free trade: IGJ
In 2018, there were many international trade talks the government wanted to be wrapped up such as Indonesia-Australia CEPA, Indonesia-Europe FTA and Regional Comprehensive Economic Partnership, says IGJ Executive Director
Govt to ratify seven trade agreements without House approval
The government has decided to ratify seven international trade agreements without the approval of the House of Representatives.
Indonesia to ratify Pakistan trade deal to protect palm oil exports
The Indonesian government will push ahead and ratify a trade deal with Pakistan to protect $1.5 billion in annual palm oil exports to the South Asia nation, a cabinet minister said.
‘Pakistan-Indonesia PTA could be upgraded to FTA’
Indonesia is expanding trade partnerships with different countries and economic blocs and a free trade agreement (FTA) with Pakistan is a part of the plans, said Indonesia Trade Minister Enggartiasto Lukita.