On November 15, 2024, the Prime Minister, Justin Trudeau and the President of Indonesia, Prabowo Subianto, issued a joint statement to welcome the substantive conclusion of negotiations for a Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) with the objective of bringing CEPA into force as soon as possible.
The federal government is expanding trade and investment with large, fast-growing markets, such as Indonesia, to help Canadians succeed at home and around the world. Indonesia is a G20 country and Southeast Asia’s largest economy. With a population of 279 million and GDP of close to $1.9 trillion in 2023, the Indonesian market holds significant potential for Canadian businesses, entrepreneurs, and investors.
Canada and Indonesia enjoy strong commercial relations. Indonesia is Canada’s 22nd largest merchandise trading partner with two-way merchandise trade totalling $5.1 billion in 2023. Last year, Canadian merchandise exports and imports were valued at $2.3 billion and $2.8 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 2023, Canadian services exports to Indonesia totalled $284 million, while Canadian services imports from Indonesia reached $181 million. Canada also has significant investment interests in Indonesia, with Canadian direct investment valued at $6.7 billion in 2023, making it the second-largest destination for known Canadian direct investment in the region.
A Canada-Indonesia Comprehensive Economic Partnership Agreement will create well-paying jobs, attract investment into Canada, and open new markets for Canadian businesses, entrepreneurs, and farmers while also advancing progress on other shared priorities, such as bringing more women into the workforce and increasing co-operation on critical minerals. A comprehensive trade agreement between Canada and Indonesia will 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 businesses, women, and Indigenous Peoples.
The CEPA represents a significant milestone in the longstanding bilateral relationship between Canada and Indonesia, which is underpinned by a shared commitment to economic growth and prosperity for our peoples.