Indonesia and Canada Explore Deeper Cooperation Following Trade Pact

“PM Carney and President Prabowo identified ways to deepen trade cooperation, particularly within the framework of ICA-CEPA,” Ambassador Dutton told reporters in Jakarta on Wednesday, June 10, 2026, as quoted by Antara.

The leaders also exchanged views on global issues, including the Middle East conflict and its impact on energy markets and the wider economy.

Signed in Ottawa in September 2025, ICA-CEPA is Canada’s first bilateral trade agreement with an ASEAN member state.

The deal paves the way for reduced or eliminated tariffs on more than 95 percent of Canadian exports to Indonesia, including wheat, potash, timber, and soybeans.

Canada completed its ratification process in May 2026, while Indonesia is still finalizing its own. Full implementation is expected by the end of this year.

Ambassador Dutton noted that ICA-CEPA could boost Indonesia’s exports to Canada to USD 11.8 billion by 2030, while contributing an additional 0.12 percent to national Gross Domestic Product (GDP) and raising investment by 0.38 percent.

Beyond ICA-CEPA, the two leaders also reviewed progress in negotiations for a Canada-ASEAN Free Trade Agreement (FTA). “PM Carney welcomed Indonesia’s continued support in advancing this shared goal,” he added.

The agreement was signed in Ottawa on September 24, 2025, witnessed by both leaders. Its implementation is expected to strengthen bilateral ties and create new opportunities for businesses in both countries.

This development highlights the growing importance of Indonesia–Canada trade relations, the potential impact of ICA-CEPA implementation, and the broader context of Canada–ASEAN FTA negotiations. ***