After two years of swift negotiations, Indonesia finalizes its first Comprehensive Economic Partnership Agreement (CEPA) in North America with Canada—marking a pivotal step in diversifying trade routes and deepening bilateral cooperation across goods, services, and investment.
Key Facts & Background
- ICA-CEPA (Indonesia–Canada Comprehensive Economic Partnership Agreement) negotiations concluded in December 2024, with signing expected in September or October 2025.
- The agreement is Indonesia’s first CEPA in North America, signaling a breakthrough in regional trade diplomacy.
- Joint Statement of Completion signed by:
- Indonesian Minister of Trade Budi Santoso
- Canadian Minister of Export Promotion Mary Ng.
- ICA-CEPA covers:
- Trade in goods: Expanded market access for Indonesian exports to Canada.
- Services: Preferential treatment for Indonesian providers in business, telecom, construction, tourism, and transport.
- Investment: Facilitated entry into manufacturing, agriculture, fisheries, forestry, mining, and energy infrastructure.
- Regulatory cooperation: Includes commitments on IP rights, e-commerce, competition, SMEs, gender empowerment, labor, and environment.
Strategic Implications
The ICA-CEPA represents a strategic leap for Indonesia’s trade diversification agenda. By anchoring its presence in North America, Indonesia not only expands its export footprint but also strengthens its positioning in global value chains. The agreement’s scope—spanning goods, services, and investment—signals a shift toward comprehensive economic diplomacy, aligning with Indonesia’s broader CEPA strategy across regions.
For Indonesian exporters, ICA-CEPA offers preferential access to a high-income market, potentially boosting sectors like textiles, processed foods, and electronics. Service providers stand to benefit from reduced barriers in Canada’s competitive service economy, while investors gain clarity and protection in key sectors.
The inclusion of SME empowerment, gender equity, and sustainability reflects a modernized trade framework that resonates with inclusive growth and ESG principles. This could enhance Indonesia’s reputation as a responsible trade partner and attract impact-driven investments.
Moreover, ICA-CEPA complements Indonesia’s recent IEU-CEPA with the European Union, positioning the country as a bridge between Asia, Europe, and North America. The dual agreements may catalyze supply chain resilience, investor confidence, and long-term economic agility.