Indonesia and Canada have officially signed the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), marking a milestone in bilateral economic relations. The signing ceremony took place on Wednesday, 24 September 2025, at the West Block Parliament Hill in Ottawa.
The agreement was formalized by Indonesian Minister of Trade Budi Santoso and Canadian Minister of Trade Maninder Sidhu. The signing was witnessed by President Prabowo Subianto and Canadian Prime Minister Mark Joseph Carney, underscoring the strategic importance of the accord.
Before the signing, President Prabowo and Prime Minister Carney held a tete-a-tete meeting to discuss areas of mutual interest and further strengthen cooperation.
First Free Trade Pact with North America
ICA-CEPA represents Indonesia’s first free trade agreement with a country in North America. It is positioned as a significant step toward enhancing economic ties between the two nations.
“This agreement is very important for us. It is very strategic economically and politically,” said Prabowo.
As part of the agreement, Canada has committed to eliminating 90.5% of its import tariffs on Indonesian goods. In return, Indonesia will liberalize 85.8% of its tariff lines. This reciprocal framework aims to expand market access and provide greater legal certainty for businesses in both countries.
Economic Impact and Projections
The Indonesian government has projected substantial benefits from the implementation of ICA-CEPA. According to official estimates, the agreement is expected to boost Indonesia’s exports to Canada to a value of $ 11.8 billion by 2030.
“We are very happy to sign the ICA-CEPA here. I think this is a historic moment and a stepping stone,” said Prabowo.
Additionally, the accord is expected to contribute 0.12% to Indonesia’s gross domestic product growth and increase foreign investment by 0.38%. These projections underscore the agreement’s potential to enhance Indonesia’s long-term economic performance.
Commitments on Regulation and Business Environment
Beyond tariff reductions, ICA-CEPA includes provisions that reinforce legal certainty and business transparency. The agreement encompasses regulatory transparency, investment protection, and commitments in areas such as empowering small and medium-sized enterprises, digital marketplaces, intellectual property rights, and sustainable trade practices.
These components are expected to create a more predictable and supportive environment for trade and investment flows between the two nations.
Diplomatic Engagements in Ottawa
Before the signing ceremony, President Prabowo was formally received by Canada’s Governor General Mary May Simon at Rideau Hall. The welcoming took place at 16.11 local time and included cultural elements, such as displays of Balinese textiles and traditional wayang figures.
The Indonesian delegation accompanying President Prabowo included Cabinet Secretary Teddy Indra Wijaya, Minister of Investment and CEO of Danantara Rosan Roeslani, and Indonesia’s Ambassador to Canada Muhsin Syihab.
“Welcome to Canada,” Simon said to Prabowo.
“Thank you,” Prabowo replied while shaking hands.
