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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 to ratify Pakistan trade deal to protect palm oil exports
The Indonesian government will push ahead and ratify a trade deal with Pakistan to protect $1.5 billion in annual palm oil exports to the South Asia nation, a cabinet minister said.
‘Pakistan-Indonesia PTA could be upgraded to FTA’
Indonesia is expanding trade partnerships with different countries and economic blocs and a free trade agreement (FTA) with Pakistan is a part of the plans, said Indonesia Trade Minister Enggartiasto Lukita.
Indonesia, Egypt to sign PTA, FTA deals to raise trade volume 300%
Indonesia and Egypt will sign a preferential trade agreement and are negotiating a free trade agreement.
Indonesia, Switzerland committed to concluding IE-CEPA
The five countries are expected to announce the completion of the negotiation in a ministerial meeting in Geneva, Switzerland on Nov. 23.
Saudi Arabia, Indonesia eye trade deals
Indonesia is currently proposing to have a Comprehensive Economic Partnership Agreement (CEPA) with the GCC countries
Negotiation update: “ How is the progress of RCEP and IEU CEPA negotiations?”
Representatives from the Civil Society Coalition for Economic Justice held a meeting with an Indonesian Trade Official and discussed the development of information on the RCEP and Indonesia EU CEPA negotiating rounds.
Tunisia, Indonesia sign preferential trade agreement
Tunisia and Indonesia signed a preferential partnership agreement at the Tunisia-Indonesia Business Forum held in Tunis.
Trade ministry set to boost Indonesia’s exports to Turkey
The Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA) has entered the second phase. Ministry of Trade said the talks, which took place on May 28-30, 2018 in Ankara, Turkey, is one of Indonesia’s efforts to increase exports to Turkey.
EU upbeat on Indonesia-EU CEPA deal amid palm oil issue
The European Union believes ongoing debate over palm oil with Indonesia will not hamper the progress of the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA).
Indonesia, Peru to enter a free trade agreement
Indonesia and Peru agreed to step up economic cooperation during a meeting between their foreign ministers in Lima, Peru.