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Indonesia-Canada trade deal set to boost exports in December

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Jakarta (ANTARA) - Trade Minister Budi Santoso is optimistic that Indonesia’s exports to Canada will increase significantly once the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA) enters into force, currently scheduled for December 1, 2026.

“We hope that Indonesian businesses will take advantage of the various facilities and opportunities created by this agreement to boost exports, expand market reach, and strengthen the competitiveness of Indonesian products in the international market,” Santoso said in Jakarta on Thursday.

The I-CA CEPA marks Indonesia’s first bilateral trade agreement with a partner in North America and Canada’s first bilateral trade agreement with a country in Southeast Asia.

The agreement will take effect following the exchange of notifications confirming the completion of ratification procedures by both countries.

Canada submitted its notification on October 1, 2026, followed by Indonesia on October 20, 2026. Under the I-CA CEPA, Canada will liberalize 90.55 percent of its tariff lines for Indonesian products.

Santoso expects the preferential tariff arrangements to make Indonesian goods more price-competitive and create opportunities for exporters to expand their presence in the Canadian market.

However, he urged businesses to pay close attention to tariff reduction schedules, rules of origin, and Canada’s technical requirements and regulations.

Johni Martha, the Trade Ministry’s director general of international trade negotiations, emphasized that businesses, including micro, small, and medium-sized enterprises (MSMEs), need to prepare for exporting to Canada.

Preparations include identifying market opportunities in Canada, ensuring products meet applicable requirements, and exploring business partnerships with prospective buyers and other potential partners.

From January to August 2026, bilateral trade between Indonesia and Canada reached US$3.51 billion, up 15.50 percent from US$3.04 billion in the same period a year earlier. During the same period, Indonesia’s exports to Canada totaled US$1.12 billion, while imports from Canada reached US$2.39 billion.

In 2025, bilateral trade between the two countries reached US$4.36 billion, up from US$3.58 billion in 2024.

Indonesia’s exports to Canada totaled US$1.70 billion in 2025, while imports from Canada amounted to US$2.67 billion.

Indonesia’s main exports to Canada include electrical machinery and equipment, rubber and rubber products, footwear, knitted goods, and apparel.

Meanwhile, Indonesia imports wheat, fertilizers, wood pulp, mineral fuels, salt, sulfur, and lime from Canada.

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