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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 ratifies Australia trade deal
The Indonesian parliament has given the green light to a new trade deal with Australia, paving the way for the agreement to be signed in Canberra on Monday.
Indonesia likely to see small gains from US-China deal
Indonesia is likely to see a small benefit from the phase-one trade deal between the United States and China as the demand for commodities and the overall Chinese economy are expected to improve.
’When two elephants fight’: EU, Indonesia tussle over resources
As disputes over palm oil and nickel head to World Trade Organization, affected residents say they feel trapped.
Indonesia warns on EU trade deal, dairy imports amid palm oil spat
Indonesia is prepared to walk away from talks on a free trade deal with the European Union over the bloc’s stance on palm oil, while also launching a probe into subsidies on dairy imports from the EU.
By the way: what’s free about free trade?
The very idea of a free trade agreement is a contradiction. You don’t need a complex agreement to trade freely.
Indonesia, Colombia to undertake feasibility study on market access
Indonesia and Colombia have agreed to shortly initiate a Joint Feasibility Study (JFS) under its efforts to tap avenues for increasing access of several Indonesian export goods to the Colombian market.
Minister designates conclusion of trade negotiations as priority
Indonesian Trade Minister brought attention to prioritizing the prompt conclusion of several international trade negotiations in 2020, including RCEP and deals with Tunisia, Morocco, the EU and Turkey.
Free Trade Agreements are fueling and shaping the oppression and injustice against women
Women gathering resulted in several demands from the grassroots women, urging the new elected government of Indonesia to stop negotiating FTAs. Women demand “no more FTAs"
Indonesia says talks concluded with South Korea for economic partnership
Indonesian and South Korean ministers signed on Wednesday a deal marking the conclusion of negotiations on the substance of an economic agreement, the Indonesian trade ministry said.
ISDS lawsuit: When corporation ignores state sovereignty
The book aims to provide an understanding to the public about ISDS mechanism, by providing a clear description of real impact caused by ISDS lawsuit faced by Indonesia.