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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


Tunisia, Indonesia to build free trade partnership
The two ministers agreed to boost bilateral cooperation that is mutually beneficial in fields including trade, investment, education, diplomatic training and fight against terrorism.
RI-Oz officials continue negotiating CEPA
High ranking officials from Indonesia and Australia are continuing to negotiate the Economic Partnership Agreement (IA-CEPA), which is expected to be completed by the end of this year.
Indonesia in sugar, pesticide deal
Indonesia will lower the tariff on our sugar exports. In exchange for the sugar deal Australia will eliminate import duties on Indonesian herbicides and pesticides.
Indonesia expects to conclude four FTAs in 2017
The government is optimistic that it will conclude four bilateral free trade agreements this year: comprehensive economic partnership agreements (CEPA) with Australia, the European Free Trade Association and Chile as well as a preferential trade agreement (PTA) with Iran.
Peru, Indonesia to likely start trade talks in December: Minister
Peru and Indonesia will likely start negotiating a free trade deal in December as Lima pursues a "very aggressive" trade agenda following Washington’s withdrawal from the Trans-Pacific Partnership, Peru’s trade minister said on Tuesday
Indonesia, Chile trade deal expected to be sealed by year-end
Indonesia and Chile are both confident about concluding a comprehensive economic partnership agreement on time at the fifth round of negotiations in Chile, scheduled for this October.
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.