RRI.CO.ID, Jakarta - Indonesia is moving closer to implementing a comprehensive economic partnership agreement with Canada aimed at expanding market access and strengthening Indonesia’s trade position in North America. The agreement is also expected to help Indonesia navigate growing geopolitical uncertainty and rising global trade protectionism.

Based on the release received by RRI VOI Thursday, May 21, 2026 Indonesian Trade Minister Budi Santoso said the Indonesia–Canada Comprehensive Economic Partnership Agreement (CEPA) would provide broader opportunities for Indonesian exports while supporting alternative distribution channels to North American markets. He delivered the remarks during a parliamentary working meeting with Commission VI of the House of Representatives in Jakarta on Tuesday.

“Global geopolitical uncertainty and increasing trade protectionism could limit market access for Indonesian products and put pressure on national export performance,” Budi Santoso said. “Therefore, Indonesia must continue expanding market access through trade agreements to reduce barriers and strengthen national competitiveness.”

According to the minister, Canada holds a strategic role as a gateway for Indonesian products entering North America, a region with a population of around 500 million people. He added that the agreement could help Indonesian exporters diversify markets beyond traditional trading partners.

The minister explained that the Indonesia–Canada CEPA includes tariff preferences and trade facilitation measures that would benefit Indonesian value-added products. He noted that the agreement could also strengthen cooperation in services and investment sectors amid ongoing changes in global tariff policies.

Trade performance between Indonesia and Canada has shown positive growth in recent years. In 2025, total bilateral trade reached USD 4.36 billion, increasing from USD 3.57 billion in 2024, while Indonesian exports to Canada rose to USD 1.69 billion from USD 1.44 billion during the same period.

Negotiations for the agreement began in June 2021 and were completed after 10 negotiation rounds over nearly three years before being signed in Ottawa in September 2025. Under the agreement, Indonesia will receive tariff elimination on 90.55 percent of Canada’s tariff lines for goods, including textiles, footwear, processed foods, seafood, and wood products.

Meanwhile, Canada will obtain tariff elimination on 85.54 percent of Indonesia’s tariff lines, mainly covering products considered complementary to Indonesia’s industrial needs such as wheat, fertilizers, industrial raw materials, and energy-related products. The agreement also includes broader access for Indonesian service providers and professionals in sectors such as engineering, architecture, healthcare, and information technology.

In the digital economy sector, Indonesia and Canada agreed to strengthen cooperation in e-commerce through recognition of electronic documents, consumer and data protection, interoperability standards, and cross-border data flows. Budi Santoso said the agreement is expected to support the development of Indonesia’s digital economy and improve the competitiveness of businesses in both countries.

The Indonesian government also plans to strengthen domestic industries and small businesses ahead of the agreement’s implementation through regulatory harmonization and improvements in industrial standards and workforce capacity. “The government hopes the implementation of the Indonesia–Canada CEPA will soon provide tangible benefits for national businesses, including micro, small, and medium enterprises, while strengthening Indonesia’s trade resilience,” the minister said.

Member of Commission VI of the House of Representatives Adisatrya expressed support for the agreement, emphasizing the importance of export market diversification. During the parliamentary meeting, Commission VI officially approved the ratification of the Indonesia–Canada CEPA through a presidential regulation.