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Canada-Indonesia Comprehensive Economic Partnership Agreement – Background information

The Government of Canada is committed to expanding trade and investment with large, fast-growing markets, such as Indonesia, to help Canadians succeed globally. Indonesia is a G20 country and Southeast Asia’s largest economy. With a population of 270 million and GDP of over $1.4 trillion, the Indonesian market holds significant potential for Canadian producers, manufacturers, and service providers across the country.

Canada and Indonesia enjoy strong commercial relations. Indonesia is Canada’s 24th largest merchandise trading partner with two-way merchandise trade totalling $3.4 billion in 2020. That year, Canadian merchandise exports and imports were valued at $1.8 billion and $1.6 billion, respectively. Indonesia is Canada’s largest export market in Southeast Asia, and a key destination for Canadian agricultural products, manufactured goods, and natural resources. In the same year, Canadian services exports to Indonesia totalled $189 million, while Canadian services imports from Indonesia reached $172 million. Canada also has significant investment interests in Indonesia, with Canadian direct investment valued at $3.5 billion at the end of 2020, making it the second largest destination for Canadian direct investment in the region.

A Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) would help unlock the potential of this dynamic, rapidly growing market for Canadians while upholding labour rights and promoting environmental sustainability.

A comprehensive trade agreement between Canada and Indonesia would facilitate new opportunities for Canadian business by:

  • eliminating or reducing tariff and non-tariff barriers
  • enhancing access to Southeast Asian supply chains
  • establishing a more transparent and predictable environment for trade and investment

In pursuing a Canada-Indonesia CEPA, the Government of Canada is committed to ensuring that the agreement reflects the interests of Canadians, and that the benefits of liberalized trade are widely shared, including with:

  • the middle class
  • small- and medium-sized enterprises
  • women
  • Indigenous peoples

Status of the negotiations

On June 20, 2021, Canada and Indonesia launched negotiations towards a Comprehensive Economic Partnership Agreement (CEPA). Respecting the transparency requirements under the Policy on Tabling Treaties in Parliament, the Government tabled its Notice of Intent to enter into CEPA negotiations with Indonesia in the House of Commons on June 21, 2021, and tabled its negotiating objectives on November 24, 2021.

The first round of negotiations took place from March 14-18, 2022. A second round of negotiations is scheduled to take place August 15-19, 2022.

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