Indonesia and Canada have reached a historic milestone with the signing of the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA), a far-reaching trade accord designed to bolster economic collaboration and unlock unprecedented opportunities. The formal signing ceremony, held on December 2, 2024, in Jakarta, was graced by the presence of 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 expressed his admiration for the dedicated efforts of the negotiation teams, who worked tirelessly over a span of more than 2.5 years to bring this agreement to fruition. He described the CEPA as a pivotal moment for Indonesia, providing a gateway for its products to penetrate the lucrative North American market, with Canada serving as a vital entry point. This agreement, he stated, symbolizes Indonesia’s commitment to enhancing its global trade profile and fostering economic partnerships that drive growth and innovation.
The CEPA is distinguished by its comprehensive scope, addressing not only the liberalization of goods but also enhancing services and investment flows. Indonesian service providers in sectors such as business services, telecommunications, tourism, construction, and transport will now benefit from preferential treatment, granting them a competitive advantage in the Canadian market. For investments, the agreement lays the groundwork for increased collaboration in key industries, including manufacturing, agriculture, forestry, mining, and renewable energy.
Additionally, the agreement reflects both nations’ shared commitment to sustainable and inclusive development. It includes provisions that promote intellectual property rights, fair regulatory practices, e-commerce, and competition policy, while also prioritizing gender equality, environmental protection, labor rights, and the growth of small and medium enterprises (SMEs). This holistic approach underscores the forward-looking vision of the Indonesia-Canada partnership.
Parallel to the CEPA signing, Canada’s Trade Mission to Indonesia unfolded as a high-impact initiative aimed at fostering business ties. From December 1 to 3, 2024, over 180 Canadian companies explored collaborative opportunities with their Indonesian counterparts in areas such as agriculture, clean technology, digital innovation, and infrastructure development. The mission demonstrated Canada’s resolve to deepen its engagement with Indonesia, laying the groundwork for enduring economic ties.
Minister Mary Ng spoke with optimism about the agreement’s potential to reshape trade relations. She encouraged Canadian businesses to explore the vast opportunities presented by Indonesia, Southeast Asia’s largest economy, and urged Indonesian entrepreneurs to capitalize on their newfound access to the North American market. Her sentiments reflected the mutual enthusiasm that has marked this milestone agreement.
Providing additional insights, Djatmiko Bris Witjaksono, Indonesia’s Director General of International Trade Negotiations, elaborated on the substantial gains secured through the CEPA. The agreement guarantees Indonesia tariff-free access to 90.5% of Canada’s trade lines, unlocking an estimated USD 1.4 billion in trade value. This opens the door for Indonesia’s flagship exports—ranging from textiles and wood products to processed foods and palm oil—to establish a stronger presence in the Canadian market.
This agreement marks a transformative chapter in the Indonesia-Canada relationship, promising to catalyze economic growth, foster innovation, and create a bridge of mutual prosperity between Southeast Asia and North America. The CEPA is more than a trade agreement; it is a testament to the shared vision of two nations determined to thrive in an interconnected world.
