Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Agreements
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Indonesia is a member of the Association of Southeast Asian Nations (ASEAN) and a participant in the ASEAN Free Trade Area (AFTA), which facilitates tariff reductions and regional integration among its ten member states. Through ASEAN, Indonesia is party to a network of regional and bilateral free trade agreements (FTAs) that enhance access to major global markets and lower barriers for goods and services. ASEAN has implemented multilateral FTAs with Australia, Canada, China, Hong Kong, India, Japan, South Korea, and New Zealand.

Indonesia has also pursued its own bilateral trade liberalization agenda. As of 2024, Indonesia maintains active bilateral FTAs with:

  • Chile (since 2019)

  • Australia under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) (entered into force in 2020)

  • Mozambique (entered into force in 2022)

  • The European Free Trade Association (EFTA) states—Iceland, Liechtenstein, Norway, and Switzerland—under the IE-CEPA, which entered into force on November 1, 2021

  • South Korea, with the Indonesia–Korea Comprehensive Economic Partnership Agreement (IK-CEPA) implemented in January 2023

  • Canada – under an agreement signed in December 2024 and likely enter into force in 2025.

Indonesia is actively negotiating trade agreements with additional partners. Ongoing negotiations include:

  • The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which has undergone over 19 rounds of talks

  • Bilateral FTAs with India, Turkey, Peru, and Tunisia

  • Updates and reviews of existing agreements with Japan and Pakistan

Indonesia’s trade agreements vary in scope but typically include commitments to eliminate or reduce tariffs, liberalize services and investment, promote cooperation in standards and technical regulations, and establish dispute resolution mechanisms. The government’s strategy is to position Indonesia as a regional production hub integrated into global supply chains, and trade agreements are central to that objective.

For detailed information and the latest updates on Indonesia’s trade agreements, including the text and status of ongoing negotiations, please consult the Indonesia section of the United States Trade Representative’s (USTR) National Trade Estimate Report on Foreign Trade Barriers 2025.

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