bilaterals.org logo
bilaterals.org logo

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 Seeks Opportunity From Expanding Asean, Bilateral FTAs
Indonesia is upbeat on its growing trade with China, South Korea, India, Australia and New Zealand following plans to set up Free Trade Area (FTA) pacts with those countries under the Association of Southeast Asia Nations (Asean) agreement and by bilateral agreements, a senior official at the Indonesian Trade Ministry said here on Monday.
RI, NZ bilateral FTA arrangements to conclude within months: FM
Indonesian and New Zealand Free Trade Agreement talks under the auspices of the ASEAN bloc have been progressing well despite the economic crisis and both countries expect the bilateral arrangement can be concluded within months, say foreign ministers.
UAE advises Indonesia to sign FTA with GCC
The United Arab Emirates (UAE) has proposed to Indonesia to enter into a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC), Indonesian Ambassador to the UAE M Wahid Supriyadi said.
Indonesia and Chile are exploring free trade agreement possibilities between the two countries
To meet the interest of Chile becoming a bridge between Asia-Pacific markets including Indonesian and South American, especially Latin America markets near to the Atlantic ocean, Indonesia and Chile are discussing the possibility of free trade agreements of both countries.
Indonesia and New Zealand to resume FTA talks in March
The negotiation on Free Trade Agreement between Indonesia and New Zealand is expected to be resumed in March 2009 after the signing of the ASEAN-Australia-New Zealand FTA agreement in February 2009.
Indonesia says New Zealand trade deal request intolerable, ‘peanuts’
Indonesia has accused New Zealand of giving “too few” while requesting “too many” special facilities that may harm certain Indonesian industries and cause massive job losses, during an ongoing free trade negotiation that could end in a deadlock.
Ministries at odds over market protection
The Trade Ministry and Industry Ministry are at odds on how to protect the domestic market from a projected influx of imported goods as the global economic slowdown cuts demand, resulting in massive excess in supply in the international market.
RI, Malaysia sign investment and trade agreement
Indonesia and Malaysia had signed here on Wednesday the first Joint Investment and Trade Committee (JICT) agreement to improve trade and investment between the two countries.
Indonesia, Turkey take first step toward FTA
Indonesia and Turkey have pledged to enhance their economic partnership, introducing a plan to formulate a comprehensive trade and economic partnership — an initial step toward a free trade agreement.
Planned bilateral deal to boost Canadian investment in RI
Canada and Indonesia are currently in talks to ink a bilateral agreement that will help protect the investments of Canadian companies in Indonesia, as well as promote Indonesia’s potential to Canadian businesses.