Indonesia and Canada strengthen economic ties via ICA-CEPA

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto met with Canadian officials, including Prime Minister Mark Carney and International Trade Minister Maninder Sidhu, during the Canada Investment Summit in Toronto to strengthen bilateral economic ties.

A central focus of the discussions was the implementation of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA). The agreement, which has been ratified by both nations, is expected to take effect by the end of 2026. Under ICA-CEPA, Canada will reduce or eliminate tariffs on over 90 percent of Indonesian products, while Indonesia will do the same for nearly 86 percent of Canadian goods.

Key sectors identified for expanded cooperation include critical minerals (such as nickel and battery materials), clean and renewable energy, nuclear energy development (including Small Modular Reactors), oil and gas, and sustainable agri-food and fisheries. Additionally, Indonesia expressed interest in studying Canada’s approach to building AI ecosystems and data center infrastructure, specifically regarding data sovereignty, public trust, and energy readiness.

Bilateral trade between the two nations reached US$3.1 billion in the first half of 2025, representing a 13 percent increase compared to the previous year. Indonesia aims to leverage its position as the largest economy in ASEAN to serve as a strategic partner for Canadian investors.