bilaterals.org logo
bilaterals.org logo

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-Iran agree to finalize trade negotiation in 2017
Indonesia and Iran have agreed to finalize negotiation on the Preferential Trade Agreement by the end of 2017, to expand access and diversify of exported products to non-traditional markets.
Joko Widodo, Erdogan sign trade deal
President Joko Widodo said that the governments of Indonesia and Turkey have agreed on a trade deal. It includes fewer trade barriers and creation of conducive investment climate.
US and Indonesia agree to step up work to expand trade
Officials from the United States and Indonesia met under their Trade and Investment Framework Agreement (TIFA), agreeing on next steps for expeditiously resolving bilateral issues and further building their trade relations.
Indonesia and Australian complete 7th economic partnership round
The main issues discussed during the round included trade — including the origin of goods, customs procedures and trade facilitations — investment, electronic trade, business competition and institutional framework provisions.
Working on a bilateral trade agreement between Indonesia-USA
The Indonesian government is currently studying the opportunities and challenges with regard to the making of a new bilateral trade deal with the USA.
Indonesia-European trade talks on track; to conclude this year
Indonesia has said twelfth round of negotiations on forming a comprehensive economic partnership agreement with the European Free Trade Association are on the right track.
Indonesia-Chile CEPA negotiations resume after delay
After being delayed for more than two years, negotiations for a comprehensive economic partnership agreement between Indonesia and Chile resumed.
Gold jewelry maker asks government for FTA with UAE
Major gold jewelry producer has asked the government to establish a free trade agreement with the United Arab Emirates to lower the country’s import tax for Indonesian jewelry.
Indonesia to finalize five trade deals next year in hunt for wider markets
As Indonesia accelerates talks with 15 Asia-Pacific nations, it is prioritizing the conclusion of five trade deals to open access to foreign markets and lure inflows of investment.
Financial services liberalization in jeopardy
There are prominent dangers associated with the negotiation of IA-CEPA, particularly with the financial services liberalization.