Indonesia operates 11 regional free trade agreements

Indonesia operates 11 regional free trade agreements (RTAs), reported the World Trade Organization (WTO).

Indonesia has pursued a policy of increasing regional and international integration through economic-trade cooperation initiatives.

Parallel to ASEAN commitments, this country maintains bilateral regional trade agreements with Pakistan (IP-PTA) and Japan (IJEPA).

The more liberalized IP-PTA has been in place since 2019, while the protocol to amend the IJEPA was still under negotiation in April 2020.

Intra-regional and extra-regional exports depend in part on ASEAN preferences.

Over the last six years, Indonesia has signed bilateral regional trade agreements with Australia, the EFTA states and Mozambique, but none had entered into force in April 2020.

Building on the ASEAN-Australia-New Zealand Free Trade Agreement, an Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) covering, among other things, trade in goods (tariffs, non-tariff measures and trade facilitation ) and services, as well as investment, was ratified by both countries in February 2020.

However, as of April 2020, there is no indication of its date of entry into force and the authorities had the planned notification to the WTO.

The broad-based EFTA-Indonesia Comprehensive Economic Partnership Agreement (CEPA) covering trade in goods, trade in services, investment, intellectual property rights, government procurement, competition, trade and sustainable development, and the cooperation was signed on December 16, 2018; in April 2020, it was expected to go into effect in the second half of 2020.


On August 27, 2019, the Preferential Trade Agreement (PTA) was signed between Indonesia and Mozambique, which covers only merchandise trade; however, as of April 2020, it had not entered into force.

Then, on November 25, 2019, a Joint Statement on the conclusion of negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and Korea was issued, and both parties agreed to sign the Agreement in the first half of 2020.

Product composition of merchandise trade, 2012 and 2019

In November 2019, the Ministry of Commerce prioritized the early conclusion of several international trade negotiations, including the Indonesia-Tunisia PTA (the fourth round of negotiations would be held in July 2020), the Indonesian Preferential Trade Agreement (PTA )- Morocco (the first round of negotiations would be held in the first half of 2020), the Indonesia-Bangladesh PTA (the third round of negotiations would be held in the first half of 2020), the Indonesia-Mauritius PTA (the second round of negotiations would take place in the first half of 2020), the Indonesia-Iran PTA (five rounds of negotiations held), the CEPA Indonesia-European Union (UIS-CEPA) (the tenth round of negotiations would be held from 16 to 20 March 2020) and CEPA Indonesia-Turkey (TI-CEPA) (fifth round of negotiations would be held on April 21 and 23, 2020).

However, the UIS-CEPA and IT-CEPA meetings had to be postponed due to the Covid-19 outbreak and a new schedule had to be determined.

Additionally, in June 2020, Indonesia and Colombia agreed to initiate and complete a joint feasibility study to increase access for various export goods to both markets.