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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 pushes palm oil companies to take legal action against the EU
Indonesia’s government said will encourage the country’s palm oil companies to file lawsuits against the EU if the bloc goes ahead with a plan to phase out use of the commodity in renewable transport fuel.
IEU CEPA review must be made based on the human rights, not the interest of palm oil industry
Indonesian CSOs Coalition for Economic Justice urges the government to review Indonesia - EU CEPA based on human rights and not the interests of palm oil industry.
ICSID arbitration Churchill v Republic of Indonesia: Annulment proceedings dismissed
The annulment committee has dismissed Churchill’s application for annulment of the award for the dispute arising out of the revocation of the mining licenses that made up the East Kutai Coal Project in East Kalimantan.
Indonesia warns EU on palm oil draft, says ’examining’ relations
Indonesia slammed the European Commission’s adoption of a draft regulation to phase out the use of palm oil in renewable transportation fuel and warned the move could hurt relations with EU members backing the proposal.
Open for business. How corporate lobbyist influence the EU-Indonesia trade negotiations
Internal documents from the European Commission reveal that corporate lobbyists have privileged access to the EU trade officials, allowing them to influence the course of the negotiations EU-Indonesia.
No palm oil in the EU-Indonesia trade and investment agreement
Friends of the Earth and Walhi urge palm oil must be excluded from trade negotiations between Indonesia and the European Union.
Sugarcane, livestock farmers worried over impact of IA-CEPA deal
Indonesian sugarcane and cattle farmers are expressing worry over a possible high inflow of sugar and livestock from Australia following the signing of the IA CEPA.
Indonesian free trade deal a big win for Aussie farmers
IA-CEPA will help ensure that Australia, and its horticulture producers, will be able to benefit from the country’s expected economic growth.
It’s more than a free trade agreement. But what exactly have Australia and Indonesia signed?
Indonesia – Australia CEPA signed without prior released text to assess its costs and benefits.
Pursuing FTA finalization target, Indonesian Government are trading away people’s live and rights
Press Release: Pursuing FTA finalization target, Indonesian Government are trading away people’s live and rights