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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


Iran, Indonesia hold first Preferential Trade Agreement negotiation
The First meeting of the Trade Negotiation Committee between Iran and Indonesia was held in Medan, the capital of the North Sumatra Province of Indonesia.
Asian regionalism and RI’s comparative advantage
Undeniably, we’re heading towards the globalization of world trade. At the same time countries face challenges other than globalization: regionalism and bilateralism. Indonesia simultaneously faces different levels of trade liberalization, whether at the global (World Trade Organization or WTO), regional (ASEAN Free Trade Area or AFTA) or bilateral level (such as with Australia).
Government agrees to speed up free trade talks with Australia
Indonesia has agreed to speed up the free trade talks with Australia to have the agreement in place soon, Trade Minister Mari Elka Pangestu said today (20/7).
Govt to go ahead with free trade deal with India
The Indonesian government will go ahead with the implementation of a free trade agreement with India despite strong opposition from local industries about a similar trade deal with China early this year, says a senior trade official.
Indonesians discontent with free trade agreements
It is believed that the Indonesian government is not fully aware of the consequences or obligations it accepted when it ratified the ASEAN-China FTA. For example, there was barely any published feasibility study of commitments undertaken within the ACFTA or public hearings before the agreement was ratified.
Indonesians protest government’s first 100 days
"We reject the ASEAN-China FTA. We’ll lose our jobs, we can’t compete with cheap Chinese products," rally coordinator Agus Supriyanto said.
Indonesia to prepare FTA deal with Egypt
The governments of Indonesia and Egypt agreed to start talks on possible free trade agreement in no time, according to Trade Minister Mari Elka Pangestu
Jakarta opts not to confront China on trade
The Indonesian government will not attempt to renegotiate a free trade agreement between Southeast Asian nations and China that will go into effect on January 1, but will request a delay in eliminating import tariffs on more than 300 Chinese products, officials said on Tuesday.
Lawmakers grill Mari over feasibility of planned FTAs
Lawmakers have demanded that Trade Minister Mari Elka Pangestu make available the feasibility studies on the proposed free trade agreements (FTAs) following business community concerns that losses may outweigh gains.
‘Indonesia has not expressed interest in FTA’
Indonesia and the European Union signed a Partnership and Cooperation Agreement (PCA) on Monday that will bring Southeast Asia’s largest economy and the largest regional grouping in the world under one umbrella for cooperation on the economy, environment, education, human rights and democracy.