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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


Nation Must Review Its Trade Pacts, Kadin Says
The Indonesian Chamber of Commerce said that the nation is not yet ready to enter into a trade pact known as the Comprehensive Economic Partnership Agreement with another country because deficits are widening in Indonesia’s trade balance.
Indonesia offers market access to 216 tariff lines
Indonesia has agreed to offer market access to Pakistan for 216 tariff lines on preferential rate under the Preferential Trade Agreement which was signed in Jakarta on Friday.
RI, Pakistan to further expand trade deal
Indonesia and Pakistan signed a preferential trade agreement on Friday in a bid to boost bilateral economic cooperation and are expected to expand the trade deal into a free trade agreement in the near future.
RI to fully implement free trade deal with OZ, NZ
Under the framework of the Association of Southeast Asian Nations (ASEAN), Indonesia is set on Tuesday to fully implement a free trade agreement (FTA) with neighboring Australia and New Zealand.
S. Korea, Indonesia agree to seek free trade deal
South Korea and Indonesia agreed to significantly boost their economic ties, a move that will include the signing of a free trade deal at an early date, the Seoul government said Monday.
Private sector ‘to play’ role in the future of free trade
An attempt by the private sector to expand business activities worldwide will determine the implementation of free trade agreements in the globalization era, an economist said Thursday.
Unbalanced power in trade
The EU and ASEAN states have been discussing the possibility of signing a Free Trade Agreement since 2007. Thankfully, the Indonesian government has decided that another one to two years is needed to fully investigate the effects of the FTA before signing.
RI, EU eyeing ‘ambitious’ free trade agreement
Indonesia and the European Union (EU) have agreed to commence talks on an “ambitious” free trade agreement (FTA), as both parties seek to boost two-way trade and EU investments in Indonesia.
Indonesia, EU seek ’ambitious’ free trade agreement
Indonesia and the European Union (EU) have agreed to commence talks on an “ambitious” free trade agreement (FTA), as both parties seek to boost two-way trade and the EU’s investments in Indonesia.
RI should speed up FTA talks with India: Gapki
The Association of Indonesian Palm Oil Producers has called on the government to speed up negotiations of a free trade agreement with India to protect Indonesia’s palm oil market following last week’s India-Malaysia free trade agreement.