Canada: Indonesia’s Export Centralization Not to Affect Bilateral Trade

RRI.CO.ID, Jakarta - Canadian Ambassador to Indonesia, Jess Dutton, does not see any significant impact on Indonesia–Canada trade from Indonesia’s plan to centralize exports of strategic commodities through Indonesia’s sovereign wealth fund, Danantara. Nevertheless, Dutton said that Canada respects Indonesia’s decision regarding its strategic exports.

"So, I mean, the Indonesian government is, you know, it's their right to implement these kind of measures. Through our initial reading, I don't believe that this will have an impact on our trading relationship," he said in a media gathering by the Canadian Embassy in Jakarta on Wednesday, June 10, 2026.

From January through March this year, trade between Indonesia and Canada totaled US$1.02 billion. However, Dutton said Canada currently does not import natural resources in large volumes, aligning with the fact that his country relies largely on the neighboring country of the United States for such commodities.

"And I, you know, we don't import some of these strategic commodities at great value from Indonesia. But I also don't think that's the intent to reduce the export of these commodities, so we don't see any impact in terms of our trading relationship," he said.

Previously, Indonesian President Prabowo Subianto, announced a regulation in May requiring exports of the country’s strategic natural resources to be conducted through a single channel via Danantara. Prabowo stated that the centralization aims to strengthen oversight, combat under-invoicing practices, and optimize state revenue from the natural resources sector.

Indonesian and Canadian trade is expected to grow further following the signing of the Comprehensive Economic Partnership Agreement (ICA-CEPA) on September 2025. The deal, ratified by the Canadian Parliament recently in May but to be ratified in Indonesia soon, is planned to take effect this year.

"Once it (ICA-CEPA) is fully implemented, over 95% of current Canadian exports to Indonesia will have tariffs either reduced or fully eliminated, making Canadian exports – such as wheat, potash, wood, and soybeans – far more competitive in Indonesia," Ambassador Dutton said.

"And of course, many Indonesian products going into Canada will have similar tariff reductions and will make Indonesian products much more competitive in the Canadian market," he said.