Trade Minister Budi Santoso said the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) marked Indonesia’s first comprehensive trade deal with a North American country and Canada’s first with a Southeast Asian nation.
“ICA-CEPA ushers in a new chapter in our economic ties. It opens wider market access and strengthens the competitiveness of Indonesian products and services in Canada,” Budi said in Jakarta on Thursday.
The deal was signed in Ottawa with Canada’s Minister of International Trade Maninder Sidhu and witnessed by Indonesian President Prabowo Subianto and Canadian Prime Minister Mark Carney. It was a key deliverable of Prabowo’s official visit.
Under ICA-CEPA, more than 90% of Indonesian products—about 6,573 tariff lines—will receive preferential access to Canada. Key exports such as textiles, footwear, furniture, processed foods, light electronics, automotive components and bird’s nests are expected to gain ground.
Related news: ICA-CEPA signed, Indonesia and Canada boost trade relations
Some products will face zero tariffs immediately, including seafood, processed foods, natural fiber handicrafts, household appliances, granite and marble.
In return, Indonesia will open 85.54% of its market, or about 9,764 tariff lines, to Canadian goods such as frozen beef, wheat, potatoes, seafood and processed foods.
Budi said the agreement should be seen beyond tariffs, as it also creates opportunities for Indonesian entrepreneurs and younger businesses to tap into Canada, while offering Canadian investors room to build partnerships in Indonesia.
“This signing is just the beginning. Our next task is to ensure the agreement delivers real benefits to communities, businesses and investors,” he said.
Bilateral trade between January and July 2025 reached $2.72 billion, up 30% from $2.09 billion a year earlier. Indonesia’s exports totaled $1.01 billion, while imports from Canada reached $1.71 billion, led by wheat, fertilizers, soybeans, wood pulp and gold.
Related news: Indonesia, Canada deepen ties as President Prabowo meets PM Carney
Translator: Maria, Azis Kurmala
Editor: Rahmad Nasution
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