Indonesia and Canada Sign ICA-CEPA to Strengthen Bilateral Trade Relations
Ottawa, The Gulf Observer: Indonesia and Canada have officially signed the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), marking a significant milestone in bilateral relations. The signing ceremony took place on Wednesday at Parliament Hill, Ottawa, with Indonesian President Prabowo Subianto and Canadian Prime Minister Mark Carney in attendance.
The agreement was signed by Indonesian Trade Minister Budi Santoso and Canadian Trade Minister Maninder Sidhu, as part of several cooperation documents finalized during President Prabowo’s official visit to Canada.
“I am very pleased to be here for the CEPA signing, and this will be a historic moment. This will be a significant milestone for Indonesia–Canada relations,” President Prabowo said in a statement on Thursday.
According to the statement, the ICA-CEPA provides legal certainty and expands market access for both nations. Canada has agreed to eliminate 90.5 percent of tariffs, while Indonesia liberalized 85.8 percent of tariff lines. Prime Minister Carney described the agreement as “a game-changer,” noting that it will make 95 percent of Canadian exports to Indonesia more competitive and create greater opportunities for workers and shared prosperity.
The ICA-CEPA is projected to increase Indonesian exports to Canada to US$11.8 billion by 2030, contributing an additional 0.12 percent to national GDP and boosting investment by 0.38 percent. The agreement also strengthens cooperation in micro, small, and medium enterprises (MSMEs), digital trade, and intellectual property rights.
During the visit, the leaders also witnessed the signing of a memorandum of understanding (MoU) on defense cooperation between Indonesia’s Ministry of Defense and Canada’s Department of National Defense. The MoU complements agreements signed earlier in August and aims to expand defense collaboration, including participation in joint exercises under the Super Garuda Shield (SGS) program, regular defense dialogues, and long-term strengthening of bilateral military industries.
“We appreciate this MoU on Defense Cooperation. We value our relationship with Canada. We want to send more of our young people to study here, train here, and collaborate in the defense sector in the future,” President Prabowo said.
Additionally, a MoU on trade and investment was signed between the Indonesian Chamber of Commerce and Industry (Kadin) and the Business Council of Canada (BCC), further deepening economic ties between the two nations.
