Indonesia and Canada have officially signed the Joint Declaration on the Conclusion of the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA), marking a monumental step in strengthening economic ties between the two nations. The signing ceremony took place during the opening of Canada’s Trade Mission to Indonesia on Monday, December 2, 2024, in Jakarta. The event was officiated by Indonesia’s Minister of Trade, Budi Santoso, and Canada’s Minister of International Trade, Export Promotion, Small Business, and Economic Development, Mary Ng.
Minister Budi Santoso highlighted the significance of this achievement, emphasizing the persistent efforts of both negotiation teams over the past two and a half years. “After more than 2.5 years of diligent negotiations, Indonesia has finally secured a comprehensive trade agreement with Canada. The Indonesia-Canada CEPA will vastly expand market access for Indonesian products into North America, particularly Canada,” he stated with optimism.
The agreement goes beyond conventional trade. It offers preferential treatment to Indonesian service providers in sectors such as business services, telecommunications, construction, tourism, and transportation. On the investment front, the CEPA aims to streamline access for investments in critical sectors, including manufacturing, agriculture, fisheries, forestry, mining, and energy infrastructure, thus fostering deeper economic integration.
Furthermore, the CEPA encompasses commitments to intellectual property rights, good regulatory practices, e-commerce, competition policy, small and medium enterprises (SMEs), women’s economic empowerment, environmental standards, and labor rights. This comprehensive framework sets the stage for a robust and sustainable economic partnership that addresses contemporary global challenges.
The signing coincided with Canada’s three-day trade mission to Indonesia from December 1–3, 2024, which brought over 180 Canadian companies to Jakarta. These companies explored collaboration opportunities in priority sectors such as agriculture, clean technology, information technology, and infrastructure. The mission served as a testament to Canada’s commitment to enhancing bilateral economic engagement.
During the ceremony, Minister Budi extended Indonesia’s support for Canada’s upcoming presidency of the G7 in 2025. “Indonesia believes Canada will play a pivotal role in bridging the gap between developed and developing nations,” he remarked, reinforcing the shared vision of the two countries in addressing global economic disparities.
Canadian Minister Mary Ng underscored the timeliness of the CEPA’s conclusion, calling it a golden opportunity for businesses and investors from both nations. “This is the perfect time for Canadian businesses and investors to expand their ventures into Southeast Asia’s largest economy. Similarly, it is an opportune moment for Indonesian enterprises to explore the North American market,” she declared, underlining the mutual benefits of the agreement.
The potential economic impact of the CEPA was further elaborated by Djatmiko Bris Witjaksono, Indonesia’s Director General of International Trade Negotiations. According to Djatmiko, the agreement provides Indonesia with liberalized market access to Canada for 90.5% of tariff lines, representing a trade value of approximately USD 1.4 billion.
“This agreement paves the way for Indonesia’s flagship products, including textiles, paper and its derivatives, wood products, processed foods, edible bird nests, and palm oil, to enter the Canadian market on a larger scale,” Djatmiko explained, underscoring the opportunities that lie ahead for Indonesian exporters.
As both nations embark on this new chapter of economic partnership, the Indonesia-Canada CEPA is expected to not only boost bilateral trade and investment but also set a benchmark for future economic collaborations in a rapidly evolving global landscape. The agreement signifies a commitment to shared prosperity, innovation, and inclusive growth, heralding a new era of cooperation between Indonesia and Canada.