The leaders of Canada and Indonesia met in Ottawa for the first time in 25 years, signing agreements on trade, defence cooperation, and investment partnerships.
The Sept. 24 trade deal will scrap and reduce tariffs on more than 95 percent of Canadian exports to Indonesia within eight to 12 months, while a second partnership deal will provide up to $825 million to promote joint ventures and investment in renewable energy, digital service, infrastructure, and manufacturing, according to the Prime Minister’s Office (PMO).
The bilateral Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) will particularly benefit Canada and Indonesia’s clean technology, agriculture, infrastructure, financial services, and critical minerals sector, according to Carney.
The bilateral deal also increases market access, simplifies investment rules, and strengthens cooperation on standards and regulatory practices, which could make it easier for Canadian firms to operate in Indonesia and vice versa, according to Global Affairs Canada.
Prime Minister Mark Carney and Indonesian President Prabowo Subianto said the deals signed Sept. 24 will bring significant support to small- and medium-sized businesses in both countries as well as empowering women and addressing climate change. Indonesia currently has a target of reaching net zero emissions by 2060, while Ottawa aims to hit net zero emissions by 2050.
“In the face of a shifting global landscape, Canada’s new government is diversifying and strengthening our partnerships to create greater prosperity, security, and high-quality career opportunities for Canadian workers,” Carney said in a Sept. 24 statement.
The two leaders also announced a future plan of action to deepen Canada-Indonesia ties further.
“To guide future engagement, the leaders also mandated their foreign ministers to finalize, as soon as possible, a 2026-2029 Canada-Indonesia Plan of Action to build on the two countries’ shared commitment as pluralistic democracies to deliver meaningful and lasting benefits for the peoples of both countries,” the PMO announced Sept. 24.
“This Plan of Action will provide a roadmap for a strategic, forward-looking, and outcome-oriented cooperation across the three main pillars: economic partnership, defense and political cooperation, and people-to-people ties.”
An additional deal signed Sept. 24 updated a previous memorandum of understanding between Canada and Indonesia, boosting defence ties on training collaboration, maritime security, cyber defence, and commitment to a peacekeeping alliance.
Indonesia is currently Canada’s third-largest merchandise trading partner among Southeast Asian countries, the PMO noted, with two-way trade between the two nations amounting to $5.6 billion last year. In comparison, Canada exported approximately $547 billion of goods to the United States last year, and imported approximately $377 billion in goods from the United States, according to Global Affairs Canada.
