Indonesia and Canada have ushered in a new era of bilateral economic collaboration through the signing of the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA). This milestone agreement was formalized in Jakarta on December 2, 2024, during the opening of Canada’s Trade Mission to Indonesia. Indonesia’s Minister of Trade, Budi Santoso, and Canada’s Minister of International Trade, Export Promotion, Small Business, and Economic Development, Mary Ng, presided over the ceremony, which highlighted the culmination of more than two and a half years of negotiations.
Minister Budi Santoso, in his remarks, celebrated the persistence and hard work of the negotiation teams that had laid the foundation for this comprehensive agreement. The CEPA, he noted, will open significant opportunities for Indonesian products to access the North American market, with Canada providing a strategic gateway. He emphasized that this agreement is a reflection of Indonesia’s readiness to compete on the global stage and its commitment to establishing robust economic partnerships worldwide.
The CEPA is a groundbreaking pact that goes beyond the traditional exchange of goods. It includes preferential treatment for Indonesian service providers in areas such as business services, telecommunications, tourism, construction, and transportation. These provisions aim to elevate the competitiveness of Indonesian businesses in Canada. Additionally, the agreement introduces a streamlined framework to encourage investments in Indonesia’s priority sectors, including manufacturing, agriculture, forestry, fisheries, energy infrastructure, and mining. These investment opportunities are expected to drive growth and innovation across both nations.
A unique feature of the CEPA is its holistic approach to modern economic challenges. The agreement incorporates provisions addressing intellectual property rights, regulatory harmonization, e-commerce, and competition policy. Beyond these technical aspects, it also underscores the importance of inclusive growth by promoting gender equality, environmental sustainability, labor standards, and the development of small and medium enterprises (SMEs). Such inclusivity ensures that the benefits of the agreement extend across all layers of society.
Canada’s Trade Mission to Indonesia, held from December 1 to 3, 2024, ran parallel to the signing of the CEPA. The mission involved over 180 Canadian companies seeking to build partnerships in diverse sectors such as clean technology, agriculture, digital innovation, and infrastructure. This mission underscored Canada’s proactive approach to fostering deeper economic ties with Indonesia, a growing economic powerhouse in Southeast Asia.
Mary Ng, Canada’s Minister of International Trade, reflected on the strategic importance of this agreement, highlighting its potential to transform bilateral trade dynamics. She encouraged Canadian businesses and investors to seize the opportunities available in Indonesia, Southeast Asia’s largest economy. Similarly, she urged Indonesian entrepreneurs to explore the untapped potential of the North American market, leveraging the liberalized trade and investment provisions outlined in the CEPA.
Adding further perspective, Djatmiko Bris Witjaksono, Indonesia’s Director General of International Trade Negotiations, elaborated on the tangible benefits secured by the agreement. He revealed that the CEPA ensures liberalized access for 90.5% of Canada’s tariff lines, representing a trade value of USD 1.4 billion. This breakthrough is expected to enhance the export potential of Indonesia’s flagship products, such as textiles, processed foods, wood products, palm oil, and edible bird nests, in the Canadian market.
The CEPA represents a bold step forward for Indonesia and Canada, positioning both nations as key partners in a rapidly evolving global economy. It not only enhances trade and investment flows but also sets a benchmark for comprehensive and inclusive economic agreements in the 21st century.
