Indonesia’s signing of the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) in Ottawa marks a historic milestone, symbolizing the first free trade agreement between Indonesia and a North American country, and between Canada and an ASEAN member state.

Indonesia stands at a crossroads in redefining its foreign policy to match its growing global weight and ambitions. A genuine overhaul must begin with a clear articulation of national interests, supported by strategic use of three key pillars: foreign policy instruments, channels, and diplomatic infrastructure.

Europe is accelerating efforts to expand its global trade network amid evolving geopolitical and economic challenges, including shifting U.S. tariff policies and China’s industrial overcapacity. As German auto exports to China slow, the EU is taking bold steps to diversify its markets and strengthen multilateral trade cooperation.

Indonesia’s export boom following China’s WTO accession significantly improved labor market outcomes, particularly in regions with strong manufacturing activity. The study finds that between 2000 and 2014, districts more exposed to manufacturing export expansion experienced higher formal employment growth and greater income gains among lower- and middle-income groups, while commodity-driven exports yielded limited benefits.

Branding in Indonesia plays a crucial role in establishing competitive advantage for businesses navigating the country’s culturally diverse and dynamic market. Success depends on a deep understanding of local consumer behavior, values, and market trends.

Indonesia is expected to enter the final quarter of 2025 with cautious optimism, as the Jakarta Composite Index (JCI) faces a volatile environment shaped by both global and domestic factors.

Indonesia’s pursuit of becoming an advanced economy by 2045 is challenged by concentrated trade, investment, and supply chain dependencies that heighten its exposure to geopolitical and economic shocks.

Indonesia’s implementation of the Online Single Submission (OSS) system has significantly improved the country’s business licensing environment by streamlining regulatory procedures and reducing barriers for micro, small, and medium-sized enterprises (MSMEs), which are central to its rapidly growing digital economy.

Indonesia’s Batam, Bintan and Karimun (BBK) islands present a strategic yet underutilized gateway for boosting Australian investment into Southeast Asia’s largest economy. While Australia’s outbound investment into Indonesia remains low despite recent growth, leveraging Singapore’s infrastructure, connectivity, and business familiarity offers a promising path forward.