Indonesia-Canada CEPA: Prioritizing Pragmatic Partnerships, Co Investment, Growth
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. Concluded in less than four years, the pact reflects strong political will and shared commitment to deepening economic and strategic ties amid global trade uncertainties. ICA-CEPA will remove over 90 percent of tariffs on Indonesian exports and nearly 86 percent on Canadian goods, expand cooperation in investment, critical minerals, and services, and enhance transparency and business confidence. The agreement promises tangible benefits—boosting Indonesia’s exports to $11.8 billion by 2030, strengthening food security through more affordable Canadian agricultural imports, and fostering collaboration in the electric vehicle supply chain by linking Indonesia’s nickel with Canada’s lithium reserves. With strong support from business communities and provisions empowering SMEs, ICA-CEPA establishes a forward-looking framework for inclusive, sustainable, and innovation-driven growth, positioning both nations as strategic partners in building a resilient and future-ready Indo-Pacific economy.