Antara News·Indonesia·Wednesday, September 16, 2026 at 08:26 PM

Indonesia, Canada target ICA-CEPA implementation by late 2026

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Bayu Saputra, Yashinta Difa

Jakarta (ANTARA) - Indonesia and Canada are gearing up for the full implementation of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), which is targeted to enter into force by late 2026.

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto stated that both nations remain optimistic as bilateral trade relations transition from post-ratification to concrete execution.

"Both countries are optimistic about preparing for the agreement's implementation, scheduled for the end of this year," Airlangga said in a statement on Wednesday (September 16), following a bilateral meeting with Canada's Minister of International Trade Maninder Sidhu at the Canada Investment Summit in Toronto.

Signed in September 2025 as Indonesia’s first comprehensive economic partnership in North America, the agreement is projected to dramatically expand trade corridors - with Indonesia's exports to Canada expected to reach US$11.8 billion by 2030.

Under the terms of the deal, Canada will eliminate or reduce tariffs on over 90 percent of tariff lines for Indonesian products, while Indonesia will lift or cut duties on nearly 86 percent of tariff lines for Canadian goods.

Bilateral trade between the two countries has recorded steady growth, expanding at an average rate of 9.13 percent annually since 2021.

In the first half of 2025, total trade reached US$3.1 billion, up 13 percent compared to the same period in the previous year.

Beyond traditional goods, the partnership targets strategic growth areas including critical mineral downstreaming, clean energy, agri-food, sustainable fisheries, infrastructure and digital services.

Airlangga noted that both governments are actively addressing technical challenges prior to implementation, including aligning standardization requirements, labor and sustainability practices as well as capacity building for micro, small and medium enterprises (MSMEs).

"Today's meeting reaffirms the shared commitment of Indonesia and Canada to ensure that the ICA-CEPA delivers tangible benefits for businesses in both countries," Airlangga concluded.

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