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Indonesia’s International Free Trade Agreements

Indonesia has signed a number of free trade agreements as an independent market as well as a member of the Association of Southeast Asian Nations (ASEAN). These trade agreements provide Indonesian consumers and businesses with improved market access for goods and services, new technologies, and investment opportunities.

List of Indonesia's Free Trade Agreements

Name of Agreement

Status

Year

ASEAN-Australia and New Zealand Free Trade Agreement

Signed and in Effect

2010

ASEAN-Canada FTA

Negotiations launched

2021

ASEAN-EU Free Trade Agreement

Proposed/Under consultation and study

2007

ASEAN-Eurasian Economic Union Free Trade Agreement

Proposed/Under consultation and study

2016

ASEAN-Hong Kong, China Free Trade Agreement

Signed and In Effect

2019

ASEAN-India Comprehensive Economic Cooperation Agreement

Signed and In Effect

2010

ASEAN-Japan Comprehensive Economic Partnership

Signed and In Effect

2008

ASEAN-Pakistan Free Trade Agreement

Proposed/Under consultation and study

2009

ASEAN-People’s Republic of China Comprehensive Economic Cooperation Agreement

Signed and In Effect

2005

ASEAN-Republic of Korea Comprehensive Economic Cooperation Agreement

Signed and In Effect

2007

Australia-Indonesia Comprehensive Economic Partnership Agreement

Signed and In Effect

2020

Canada-Indonesia Comprehensive Economic Partnership Agreement

Negotiations launched

2021

Comprehensive Economic Partnership for East Asia (CEPEA/ASEAN+6)

Proposed/Under consultation and study

2005

East Asia Free Trade Area (ASEAN+3)

Proposed/Under consultation and study

2004

Free Trade Area of the Asia Pacific

Proposed/Under consultation and study

2014

India-Indonesia Comprehensive Economic Cooperation Arrangement

Negotiations launched

2011

Indonesia-Chile Free Trade Agreement

Signed and In Effect

2019

Indonesia-Colombia Free Trade Agreement

Proposed/Under consultation and study

2019

Indonesia-Eurasian Economic Union

Proposed/Under consultation and study

2016

Indonesia-European Free Trade Association Free Trade Agreement

Signed and In Effect

2021

Indonesia-European Union Comprehensive Economic Partnership Agreement

Signed and In Effect

2021

Indonesia-Gulf Cooperation Council Free Trade Agreement

Proposed/Under consultation and study

2018

Indonesia-Japan Economic Partnership Agreement

Signed and In Effect

2008

Indonesia-Kenya Free Trade Agreement

Proposed/Under consultation and study

2017

Indonesia-Morocco Preferential Trade Agreement

Negotiations launched

2019

Indonesia-Mozambique Free Trade Agreement

Signed but not yet In Effect

2019

Indonesia-Nigeria Preferential Trade Agreement

Proposed/Under consultation and study

2017

Indonesia-Pakistan Free Trade Agreement

Signed and In Effect

2013

Indonesia-Peru FTA

Proposed/Under consultation and study

2014

Indonesia-Republic of Korea Free Trade Agreement

Signed but not yet In Effect

2020

Indonesia-South Africa Free Trade Agreement

Proposed/Under consultation and study

2018

Indonesia-Sri Lanka Free Trade Agreement

Proposed/Under consultation and study

2018

Indonesia-Taipei, China FTA

Proposed/Under consultation and study

2011

Indonesia-Tunisia Preferential Trade Agreement

Negotiations launched

2018

Indonesia-Türkiye Comprehensive Economic Partnership Agreement

Negotiations launched

2017

Indonesia-Ukraine Free Trade Agreement

Proposed/Under consultation and study

2016

Indonesia-United States Free Trade Agreement

Proposed/Under consultation and study

1997

Preferential Tariff Arrangement-Group of Eight Developing Countries

Signed and In Effect

2011

Regional Comprehensive Economic Partnership

Signed and In Effect

2022

Trade Preferential System of the Organization of the Islamic Conference

Signed and In Effect

2022

FTAs as an independent market

Indonesia-Japan Economic Partnership Agreement

The Indonesia-Japan Economic Partnership Agreement (IJEPA) removes tariffs for 90 percent of goods, particularly for agricultural and industrial products that Japan exports to Indonesia, as well as for Indonesian agricultural products that are exported to Japan.

Indonesia-Korea Comprehensive Economic Partnership

The Indonesia-Korea Comprehensive Economic Partnership (IK-CEPA) eliminates 95 percent of Indonesia’s tariffs on exports to South Korea and 92 percent of South Korean tariffs on exports to Indonesia. The agreement boosts Indonesia’s fisheries and agriculture sectors while also strengthening South Korea’s automotive and industrial sectors.

Indonesia-Australia Comprehensive Economic Partnership Agreement

Indonesia and Australia allow their citizens with tertiary levels of education to gain work experience in each other’s market. This applies to finance, mining, healthcare, infrastructure development, and engineering, among others.

The agreement provides greater market access for agricultural products and livestock for both countries.

Indonesia-European Free Trade Association Comprehensive Economic Partnership

The Indonesia-European Free Trade Association (EFTA) Comprehensive Economic Partnership (IECEPA) eliminates tariffs for the majority of merchandise traded between Indonesia and the EFTA states. The EFTA states include Iceland, Liechtenstein, Norway, and Switzerland.

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The RCEP Advantage – Trade Opportunities In Indonesia

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The Regional Comprehensive Economic Partnership

The RCEP is estimated to cover 30 percent of the global GDP of US$25.8 trillion and comprises 30 percent of the world’s population. The RCEP sets to eliminate 92 percent of tariffs on goods traded among its 15 members. For Indonesia, the RCEP could boost the country’s trade surplus by US$979 million, more than double the current trade surplus of US$383 million by 2040.

FTAs as a member of the Association of Southeast Asian Nations (ASEAN).

ASEAN Trade in Goods Agreement

The ASEAN Trade in Goods Agreement (ATIGA) was established to consolidate and streamline all the provisions under the Common Effective Preferential Tariff for ASEAN Free Trade Agreement (CEPT-AFTA).

To ensure the free flow of goods in ASEAN, the ATIGA comprises elements such as tariff liberalization, trade facilitation, and removing non-tariff barriers.

ASEAN-Australia-New Zealand Free Trade Area

The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) eliminates 90 percent of goods traded between ASEAN, Australia, and New Zealand. The FTA covers approximately a population of 653 million and over US$4.3 trillion. 

ASEAN-China Free Trade Area

Through the ASEAN-China Free Trade Area (ACFTA), China has consistently ranked as ASEAN’s largest investor over the last decade, with total trade of over US$731 billion in 2020.

Did You Know
The FTA reduced tariffs on more than 7,000 product categories — or 90 percent of imports — to zero by 2010.

ASEAN-India Free Trade Area

The signing of the ASEAN-India Trade Area (AIFTA) agreement paved the way for the creation of one of the world’s largest free trade area markets, creating opportunities for over 1.9 billion people in ASEAN and India with a combined GDP of US$4.8 trillion. The agreement set off tariff liberalization on over 90 percent of products.

ASEAN-Japan Comprehensive Economic Partnership

The ASEAN–Japan Comprehensive Economic Partnership (AJCEP) covers trade in services, goods, investments, and economic cooperation.

The FTA eliminates taxes on 87 percent of all tariff lines and adds a dispute resolution system. It also allows for back-to-back shipment of goods between member countries, third-party invoicing of goods, and ASEAN cumulation.

Indonesia’s Double Taxation Avoidance Agreements network

Indonesia has signed 71 DTAAs. These agreements ensure the elimination of double taxation on income earned from the taxpayer’s country of residence and Indonesia in the form of reduced withholding tax rates on dividends, interests, and royalties and withholding tax exemptions on services fees. Foreign investors should seek the help of registered tax advisors to better understand how they can benefit from this network.

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