Jakarta, Indonesia Sentinel — Indonesia and Canada signed a Comprehensive Economic Partnership Agreement (ICA-CEPA) on Wednesday (September 24, 2025), granting free import tariff on 90.5% of Indonesian goods.
The deal was signed by Indonesian Trade Minister Budi Santoso and Canada’s Minister of International Trade Maninder Sidhu at the West Block, Parliament Hill, in Ottawa, witnessed by President Prabowo Subianto and Canadian Prime Minister Mark Carney.
“This signing marks a historic milestone in Indonesia-Canada economic relations,” President Prabowo said at the ceremony. “I am delighted to be here for the CEPA signing, and I believe this will prove to be a significant step forward for both nations.”
Under ICA-CEPA, Canada committed to eliminating tariffs on 90.5% of Indonesian imports, while Indonesia will remove tariffs on 85.8% of Canadian goods.
The agreement is expected to boost Indonesian exports to Canada to US$11.8 billion (roughly Rp197,7 trillion) by 2030, add 0.12% to national GDP, and raise foreign investment by 0.38%.
Beyond economic gains, the deal ensures regulatory transparency, investment protection, and cooperation in areas such as small and medium-sized enterprise (SME) empowerment, digital marketplaces, intellectual property rights, and sustainable trade.
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The two countries also signed a Defense Cooperation Arrangement between Indonesia’s Ministry of Defense and Canada’s Department of National Defence. The accord builds on a memorandum of understanding signed in August 2025.
The agreement expands defense collaboration between Indonesia and Canada, including Canada’s participation in the Super Garuda Shield military exercise, regular defense dialogues, and long-term defense industry partnerships.
In addition, Indonesia and Canada concluded a Memorandum of Understanding on Cooperation in Commerce, Trade, and Investment. The agreement signed by the Indonesian Chamber of Commerce and Industry (KADIN) and the Business Council of Canada (BCC).
Though business-to-business in nature, the MoU is seen as an important step to deepen economic ties by strengthening private sector engagement, complementing the ICA-CEPA framework.
(Raidi/Agung)
