The agreement, signed by Indonesian Trade Minister Budi Santoso and Canadian Trade Minister Maninder Sidhu, was one of several cooperation documents concluded during Prabowo's official visit to Ottawa.
"I am very pleased to be here for the CEPA signing, and this will be a historic moment. This will be a significant milestone for Indonesia–Canada relations," Prabowo said in a statement issued on Thursday.
According to the statement, the ICA-CEPA is a milestone in economic relations, providing legal certainty and expanding market access for both countries. Canada committed to eliminating 90.5 percent of tariffs, while Indonesia liberalized 85.8 percent of tariff lines.
In the same statement, Prime Minister Carney called the ICA-CEPA "a game-changer," saying it would make 95 percent of Canadian exports to Indonesia more competitive. He added it would open huge opportunities for workers and greater prosperity for both nations.
The ICA-CEPA is projected to raise Indonesian exports to Canada to US$11.8 billion by 2030, contributing an additional 0.12 percent to national GDP and a 0.38 percent boost in investment, while strengthening cooperation in MSMEs, digital trade, and intellectual property rights.
On the same occasion, the leaders also witnessed the signing of a memorandum of understanding (MoU) on defense cooperation between Indonesia's Ministry of Defense and Canada's Department of National Defense.
The MoU complements earlier agreements signed in August and expands defense cooperation. Canada committed to joining joint exercises under the Super Garuda Shield (SGS) program, conducting regular defense dialogues, and strengthening bilateral military industries in the long term.
"We appreciate this MoU on Defense Cooperation. We value our relationship with Canada. We want to send more of our young people to study here, train here, and collaborate in the defense sector in the future," Prabowo said.
Another MoU on trade and investment was also signed between the Indonesian Chamber of Commerce and Industry (Kadin) and the Business Council of Canada (BCC).
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Translator: Resinta Sulistiyandari
Editor: Anton Santoso
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