1 jam yang lalu
TEMPO.CO, Jakarta - Indonesia's Trade Minister Budi Santoso is confident that the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) will strengthen Indonesia's export market access to North America. This has become increasingly important amid the current global geopolitical uncertainties.
Budi deems the ICA-CEPA a strategic move for Indonesia to expand market access, reduce trade barriers, and enhance the competitiveness of national products in the global market.
According to him, Indonesia will reap various benefits from ICA-CEPA, from tariff elimination and reduction of trade barriers to opportunities for increasing exports of value-added products.
"Canada is a strategic entry point for products into the North American market, potentially reaching around 500 million people, while also being a valuable distribution channel amid the dynamics of U.S. tariffs," Budi said during a joint meeting with House Commission VI in Jakarta on Tuesday, May 19, 2026, as cited from Antara.
According to Budi, Indonesia's trade relations with Canada are complementary, thus not causing direct competition with domestic industries.
Meanwhile, Canada has a high purchasing power with a Gross Domestic Product (GDP) of US$ 2.28 trillion and a GDP per capita of around US$ 65,000. Additionally, Canada's consumer preferences for natural, healthy, halal, and environmentally friendly products align with Indonesia's flagship products.
Both countries also show continued positive trends in trade performance. In 2025, the total trade of goods between Indonesia and Canada reached US$4.36 billion, an increase compared to US$3.57 billion in 2024. Meanwhile, Indonesia's exports to Canada increased from US$1.44 billion to US$1.69 billion in the same year.
In the service sector, the total trade of services between the two countries in 2024 reached US$506.62 million, with a surplus of US$102.92 million for Indonesia. Indonesia's service exports also increased from US$278.3 million to US$304.77 million.
The minister also explains that ICA-CEPA negotiations took place over 2 years and 8 months through 10 rounds of negotiations. The negotiations began on June 21, 2021, and were officially signed on September 24, 2025, in Ottawa, Canada.
Budi says the negotiations were concluded while maintaining national interests and promoting the strengthening of domestic industries, especially micro, small, and medium enterprises (MSMEs), expanding Indonesia's market access to the North American region, and enhancing the competitiveness of Indonesian products.
"As well as diversifying export markets to reduce dependency on traditional trading partners," he says.
Under the agreement, Indonesia obtains a 90.55 percent tariff elimination, covering 6,573 tariff lines for various flagship products in Canada. Meanwhile, Canada is granted an 85.54 percent tariff elimination, covering 9,764 tariff lines in Indonesia.
Not only in the trade of goods, ICA-CEPA also provides broader access for Indonesia's service sector, including opportunities for the mobility of professionals such as engineers, architects, healthcare professionals, and information technology experts. In the digital economy sector, both countries also agreed on facilitating digital trade through the recognition of electronic documents, consumer and personal data protection, and the regulation of cross-border data transmission.
Read: What Benefits Will Indonesia Gain from Its Trade Deal with Canada?
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