Indonesia-Canada trade agreement set for December start

Canada will liberalise 90.55 per cent of its tariff lines for Indonesian products under a bilateral pact scheduled to start on December 1, 2026. Indonesian Trade Minister Budi Santoso said he expected the agreement to bring a significant increase in exports to Canada.

Ratification notifications have been exchanged, with Canada submitting its confirmation on October 1, 2026, and Indonesia doing so on October 20, 2026. The Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA) is Indonesia’s first bilateral trade pact with a North American partner. For Canada, it is the first such deal with a Southeast Asian country.

Santoso said the tariff preferences should improve the price competitiveness of Indonesian goods and open opportunities in Canada. He urged companies to study the timetable for tariff cuts, origin rules and Canadian technical requirements and regulations.

Johni Martha, director general of international trade negotiations at the Trade Ministry, said businesses, including micro, small and medium-sized enterprises, needed to identify Canadian market opportunities, ensure their products met applicable requirements and seek potential buyers and partners.

Trade between the countries amounted to US$3.51 billion during January-August 2026, a rise of 15.50 per cent from the year-earlier figure of US$3.04 billion. Indonesia exported US$1.12 billion to Canada and imported US$2.39 billion from it over that period.