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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 not renewing 2005 bilateral agreement
Indonesia has informed Singapore that it does not want to continue with a bilateral agreement signed in 2005 by both countries to promote greater investment flows, and this is an issue that must be addressed for both nations to boost economic ties, said Prime Minister Lee Hsien Loong.
RI to resume free trade talks with EU next month
The Indonesian government is to restart long-delayed negotiations on a comprehensive economic partnership agreement (CEPA) with the European Union on 15 June.
Indonesia to push for free trade pacts with South Korea, EEA
Indonesia will aggressively pursue talks on free trade agreements with countries such as South Korea and the three European Economic Area (EEA) nations, in its latest move to boost exports, a government official said on Monday.
Pakistan aims for FTA with Indonesia to further boost trade
Pakistan is aiming to start negotiations on a free trade agreement (FTA) with Indonesia sometime this year, to expand on the current preferential trade agreement (PTA), which began in 2013.
Indonesia to resume free-trade talks
Indonesia will resume free trade and economic partnership negotiations with important trading partners as President Joko "Jokowi" Widodo’s administration steps up efforts to boost exports amid the country’s economic slowdown.
Update on Indonesia BITs review
Indonesia for Global Justice together with Indonesian civil society networks met with the Director of Bilateral Cooperation of Investment Coordinating Board, Fritz Horas Silalahi, in Jakarta to discuss the review of Indonesia Bilateral Investment Treaties (BITS).
Indonesia mulls canceling trade pact with Japan after years of deficit
Indonesia is considering a halt to the Indonesia-Japan Economic Partnership Agreement, as the deal fails to boost the Southeast Asian country’s trade with Japan since it has posted a deficit for every year since 2008.
Indonesia fishermen to suffer more under Asean Economic Community
Indonesian fishermen will suffer more when the ASEAN Economic Community is implemented in 2015, the environmentalist organization Walhi said.
Indonesia 1, Newmont 0
US firm Newmont Mining has withdrawn its arbitration claim against Indonesia
Revamping bilateral treaties
Indonesia’s intention to end bilateral investment treaties (BIT) has been questioned again and again, most recently in an article published on July 1 in the Financial Times, writes Indonesia’s Ambassador to Belgium in a Jakarta Post opinion piece.